KUALA LUMPUR: Fibre optic cable manufacturer Opcom Holdings Bhd
has received shareholders’ approval for the company and its subsidiaries to expand the scope of business to include the telecommunications network infrastructure solutions sector.
Opcom said its shareholders have also agreed to the acquisition of the entire equity interest in T&J Engineering Sdn Bhd (TJE) for a total purchase consideration of up to RM90 million.
"The acquisition of TJE would be satisfied by a combination of cash and new ordinary shares in Opcom,” it said in a filing with Bursa Malaysia today.
Executive director Ong Soon Lim said TJE’s acquisition would allow Opcom to gain access to the former’s business and network and thus, expand its core operations to include the telecommunication network infrastructure solutions sector.
He said this would encompass, but is not limited to, setting up new telecommunications-related infrastructure, supply chain management and warehousing, among others.
"The telecommunication network infrastructure solutions business is complementary and synergistic to Opcom’s core business of fibre optic cables manufacturing and part of the company’s growth strategy of diversifying into income-generating businesses that are profitable and sustainable over the long term,” he said.
Independent non-executive chairman Datuk Mazlin Md Junid said the acquisition came with a profit guarantee of RM60 million from the financial year (FY) 2023 until FY2025.
"It will provide an additional income stream for Opcom group in the near term. Additionally, we felt that this was an opportune time owing to the proliferation and inevitability of 5G,” he added.
Opcom said the acquisition’s inter-conditional proposals are expected to be completed in the first half of 2023. - Bernama
