PETALING JAYA: Johor-based bus transport company HI Mobility Bhd
has inked conditional share sale agreements to acquire two firms - Handal BCM Sdn Bhd and Acacia Motor Services Sdn Bhd - to complement its core operational capabilities in the mass transit sector.
“With assembly, production, distribution, sales, maintenance and repair works now complementing our core operational competencies in the mass transit sector, the acquisition will strengthen our market position amid the evolving industry landscape,” it said in a statement.
According to the group, the acquisition for Handal BCM is valued at RM52.9mil while Acacia Motor is valued at RM29.63mil, which will be satisfied via the issuance of 22.04 million and 12.34 million new ordinary shares in HI Mobility at RM2.40 per share, on a willing-buyer, willing-seller basis.
HI Mobility chief executive officer Lim Chern Chuen said through the integration of Handal BCM and Acacia, the group aims to strengthen its core bus operations through the realisation of meaningful synergies, improve efficiency and establish a more integrated and streamlined transport value chain, which positions it for sustainable long-term growth.
Meanwhile, the group has also seen opportunities to expand within the electric vehicle sector, where RM1.9bil has been allocated to a government-owned public transport company to procure approximately 1,660 buses, of which 1,350 are electric buses.
“With this said, we maintain cautious optimism that the consolidation of Handal BCM and Acacia will deliver synergistic advantages, enabling HI Mobility to achieve economies of scale across procurement, logistics and production, alongside the reduction of overheads realised by streamlining overlapping functions. This overall financial impact is expected to be earnings accretive to us and enhance shareholder value.”
