Opcom shareholders approve T&J Engineering deal

Opcom executive director Ong Soon Lim said the acquisition of TJE will allow Opcom to gain access to TJE’s business and network.

PETALING JAYA: Opcom Holdings Bhd’s shareholders have approved the proposed acquisition of the entire equity interest in T&J Engineering Sdn Bhd (TJE) for RM90mil.

In a filing with Bursa Malaysia yesterday, Opcom executive director Ong Soon Lim said the acquisition of TJE will allow Opcom to gain access to TJE’s business and network.

TJE is principally involved in the provision of telecommunications network infrastructure solutions, encompassing civil as well as mechanical and electrical engineering telecommunication infrastructure deployment.

Ong said this will allow Opcom to expand its core business to include the telecommunication network infrastructure solutions business.He said this would encompass (but not be limited to) the setting up of new telco-related infrastructure, supply chain management, warehousing and network maintenance and other value-added services such as connectivity services, security services, data centres and related Internet access to cloud services.

“The telecommunication network infrastructure solutions business is complementary and synergistic to Opcom’s core business of fibre optic cables manufacturing.

“It is also part of Opcom’s growth strategy of diversifying into income-generating businesses that are profitable and sustainable over the long-term.

Opcom is primarily involved in the manufacturing of fibre optic cables and cable-related products for the telecommunications industry.

Meanwhile, Opcom chairman Datuk Mazlin MD Junid said he is excited about the company’s prospects, following the acquisition.

“For that, we are extremely grateful to the support of our shareholders as Opcom embarks on its next phase of growth.”

“The acquisition of TJE comes with a profit guarantee of RM60mil from the financial year 2023 until 2025, thus providing an additional income stream for the Opcom group in the near term. Additionally, we felt that this was an opportune time owing to the proliferation and inevitability of 5G.”

The acquisition will be satisfied by a combination of cash and new ordinary shares in Opcom.

Opcom said the inter-conditional proposals are expected to be completed in the first half of 2023.