Propel Global acquires additional 39% stake in EPCC services firm for RM6.19mil

Propel Global executive director and group CEO Angeline Lee

KUALA LUMPUR: Propel Global Bhd has proposed to acquire an additional 39% stake in Best Wide Engineering (M) Sdn Bhd (BWE) for RM6.19mil.

In a statement, the group said it had entered into a shares sale agreement for the acquisition of the stake in the engineering, procurement, construction, and commissioning (EPCC) services firm, pursuant to a put and call option agreement signed with the vendors.

Following the purchase, the group's ownership in BWE will increase from 51% to 90%, which is expected to significantly boost its service offerings in the O&G sector, particularly in plant construction, equipment design, and process systems.

"Acquiring the remaining stake in BWE allows us to enhance our core business and fully leverage its growth potential.

"Propel Global remains focused on driving sustainable growth and delivering value to our stakeholders as we continue to strengthen our position in the industry,” said executive director and group CEO Angeline Lee.

The group has also proposed a private placement of up to 10% of its issued shares, which will allow it to raise up to RM8.25mil in gross proceeds.

It said the funds raised will be allocated towards business expansion plans, working capital for overheads, and estimated expenses related to the placement.