KUALA LUMPUR: Mikro MSC Bhd
is proposing to diversify its business to include the design, manufacture, and installation of signs and advertising displays, as well as the provision of interior fit-out services.
In a filing with Bursa Malaysia, Mikro announced its plan to acquire a 100% stake in Singapore-based TES Productions & Projects Pte Ltd for RM30mil as part of this diversification.
It said the purchase consideration will be satisfied via the issuance of 134.83 million ordinary shares in Mikro at an issue price of approximately RM0.2225 per share.
TES is principally involved in the manufacturing of signs and advertising displays. It also provides general contractor services for interior fit-outs.
“Through the proposed acquisition, Mikro intends to expand and diversify its businesses to include the signage and interior fit-out businesses with the aim of providing a new source of recurring income stream to the Mikro Group and thus, to reduce the reliance on its existing businesses,” Mikro said.
It added that the diversification is expected to contribute more than 25% to its net profit and may result in a diversion of more than 25% of its net assets to the new businesses.
Barring any unforeseen circumstances and subject to all relevant approvals being obtained, the purchase is expected to be completed by the fourth quarter of 2024.
