KUALA LUMPUR: Opcom Holdings Bhd's wholly-owned subsidiary Opcom VC Sdn Bhd is expanding into the satellite communications space by acquiring 70 million shares, representing 18.03% equity interest, in Binasat Communications Bhd (Binacom) for RM39.2mil or 56 sen per share.
Johnson Chang, managing director of Opcom, said the fibre optic cables manufacturer and telco network infrastructure firm will realise immense potential in the acquisition.
"With this acquisition, we not only expand our footprint in the telecommunications sector but also diversify into the power utilities business, a strategic move that positions us for continued growth and success," he said in a statement.
The share sale agreement was entered into with Na Boon Aik, the group managing director and a major shareholder of Binacom, and is expected to be completed by the first week of October 2023.
Binacom is an investment holding company with subsidiaries primarily involved in the provision of support services for satellite, mobile and fibre optic telecommunications networks, transmission and distribution network utility infrastructure construction services, as well as engineering, procurement, construction and commissioning (EPCC) of solar facilities.
The Binacom group’s key clients comprise major local and foreign telecommunications network providers, telecommunication equipment manufacturers as well as entities from the enterprise and government sectors.
As a holder of Network Facilities Provider (NFP )/Network Service Provider (NSP) and Applications Service Provider (ASP) licences, Binasat group has been awarded contracts to set up over 275 Very Small Aperture Terminals (VSAT) targeted at underserved areas in Kelantan and Pahang.
In addition, the group has been actively participating in delivering Point of Presence (PoP) projects and currently has an order book of about RM50mil.
Binacom managing director Na Boon Aik said Opcom's stake acquisition represents a strategic alignment of their capabilities and resources.
"We believe that through the partnership, we can deliver even greater value to our clients and stakeholders.
"We are committed to a seamless integration process and are excited about the possibilities ahead together," he added.