OSK in Johor asset buy

PETALING JAYA: OSK Holdings Bhd is expanding its cable manufacturing business with the acquisition of Universal Cable (M) Bhd’s assets in Johor for RM85mil.

OSK’s unit, Olympic Cable Company Sdn Bhd, is buying the Universal Cable assets which include its manufacturing plants, land and machinery.

Universal Cable has been placed under liquidation since mid-May. OSK noted the purchase will be funded with internally generated funds of the company and subsidiaries.

“The proposed acquisition will expand the group’s production capacity to meet new demand, enhance market presence and achieve cost efficiencies through economies of scale,” OSK stated in a filing with Bursa Malaysia.

Olympic Cable is a wholly-owned subsidiary of PJ Development Holdings Bhd, which in turn is a 97.47%-owned subsidiary of OSK Holding.