KUALA LUMPUR: Nationgate Holdings Bhd
’s indirect wholly owned subsidiary, NationGate System Sdn Bhd, has entered into a sale and purchase agreement to acquire the entire issued and paid-up share capital of Valeo Malaysia CDA Sdn Bhd for RM60.89mil cash.
In a filing with Bursa Malaysia, the electronics manufacturing services (EMS) provider said the agreement was signed with Valeo Management, the sole shareholder of Valeo Malaysia, to acquire 168.2 million ordinary shares, representing 100% equity interest in the company.
NationGate said the acquisition will be settled fully in cash using internally generated funds, subject to price adjustment.
Valeo Malaysia is principally engaged in the manufacture of plastic injection moulded parts and components, printed circuit board assemblies, as well as final testing and assembly of modules and products. It also owns two leasehold industrial properties in Perai, Penang, which house its factory facilities.
Based on its audited financial statements, Valeo Malaysia recorded a net loss of RM1.96mil for the financial year ended Dec 31, 2024 (FY24), with net assets of RM18.45mil.
For the period from Jan 1 to Apr 30, 2025, the company reported a profit after tax of RM4.35mil and net assets of RM22.79mil.
NationGate said the acquisition aligns with its strategy to strengthen and expand its EMS business, enabling it to broaden its customer base and secure direct access to key automotive end customers.
“The acquisition is expected to deliver synergistic benefits to the enlarged group through improved cost efficiencies, streamlined integration, and optimised production processes, as well as more effective utilisation of shared resources.
“While the impact on profitability cannot be precisely quantified at this stage, given prevailing market conditions and economic factors, the acquisition is anticipated to contribute positively to the group’s financial performance and long-term prospects,” NationGate said.
