PETALING JAYA: Pekat Group Bhd
’s wholly owned subsidiary, Pekat Teknologi Sdn Bhd, has completed the RM96mil acquisition of a 60% stake in Apex Power Industry Sdn Bhd, marking its entry into the power distribution equipment business.
Pekat Group, a solar photovoltaic and earthing and lightning protection (ELP) specialist stated that Apex Power, along with its wholly owned subsidiary EPE Switchgear Sdn Bhd, is one of Malaysia’s largest manufacturers of medium voltage electrical switchgear.
Apex Power and EPE Switchgear are also engaged in manufacturing, engineering, and project activities within the power sector, with their products and service sold to foreign countries such as Qatar, Sri Lanka, Oman, Australia and Germany.
Pekat chief executive officer Tai Yee Chee said the acquisition positions the group in a well-established sector, offering steady growth and solid returns.
By adding a robust new pillar, Pekat would reinforce its path to sustainable and enduring profitability, with the power distribution segment projected to contribute 25% or more to the group’s future earnings, Tai said.
“Pekat will leverage Apex Power’s track record in the power distribution equipment business and foreign-market presence to expand and complement the group’s existing businesses and market position.
“This is expected to be achieved via the integration of power distribution equipment marketed under the EPE brand into Pekat’s products and services, thereby allowing cross-selling of the group’s ELP products to EPE Switchgear’s customer base, as well as the inclusion of EPE Switchgear’s power distribution equipment for the group’s solar projects,” he added.
Tai said the power distribution equipment business segment is expected to increase and diversify the group’s earnings based on the aggregate profit guarantee from Apex Power of not less than RM48mil for the combined periods in the financial years ending Sept 30, 2024 to 2026.
“Therefore, we expect the new business segment to contribute 25% or more of the net profits of the group in the future,” he added.
In September, Pekat Group announced it had secured a contract worth RM115mil to develop a 29.99megawatt solar farm in Kinta, Perak.
