KUALA LUMPUR: The heads of Sanichi Technology Bhd and PNE PCB Bhd’s proposed takeover of BSL Corp Bhd will strengthen their precision metal parts and printed circuit board (PCB) operations, according to the offer document to BSL’s minority shareholders on Wednesday
Sanichi managing director Datuk Seri Pang Chow Huat and PNE PCB executive director Ho Jien Shiung – who are the joint offerors in the takeover of BSL – said potential synergies can also be tapped by leveraging on each company’s existing customer base.
“The acquisitions would allow the joint offerors to acquire statutory control of the businesses and operations of the BSL, whereby, the joint offerors are accorded the flexibility to implement various business strategies (e.g. joint marketing strategy) for the BSL to realise its future growth potential, ” they said.
Pang and Ho had acquired a 51.72% stake or 49.98 million shares in BSL Corp for RM57.47mil or RM1.15 a share from Esteem Role Sdn Bhd on June 23. Following the acquisition, they were required to extend an unconditional mandatory takeover offer for the remaining 46.65 million shares.
BSL’s core business is precision stamping and tooling, printed circuit board and module assembly; and renewable energy.
Under the precision stamping and tooling segment, BSL manufactures precision metal parts and components for various segments in home appliances, computer, television, automotive, automation, industrial and data storage products.
“The businesses of the BSL are closely related to the joint offerors’ personal investments in Sanichi and PNE PCB, ” they said.
Sanichi designs and fabricates precision plastic injection moulds and tooling. Under its moulds segment, Sanichi fabricates various types of tools, dies and moulds for use in various manufacturing processes e.g. injection moulding and die casting.
These moulds are specialised tools which are used to produce semi-finished parts used in various industrial sectors. These moulds are also used in the BSL’s precision metal stamping operations as these tools are installed in the press machines to convert flat metal sheets into specific shapes through various presses, into parts or products.
PNE PCB manufactures and sells printed circuit boards (PCBs) where electrical components are mounted on. The assembly process requires the use of solder to place the components on the board.
They said BSL provides such PCB assembly, and the acquisition is an opportunity which is complementary to the joint offerors’ personal investments in Sanichi and PNE PCB as Sanichi will be able to manufacture the moulds used in the business of BSL while PNE PCB is an upstream operation for the BSL’s PCB assembly lines.
The offer to BSL minority shareholders is from Wednesday to Aug 4.