Opcom To Acquire JENDELA Sub-Contractor T&J Engineering For RM90 Million

Opcom Holdings Berhad is set to acquire telecommunication network infrastructure provider T&J Engineering Sdn Bhd for RM90 million as it looks to firm up its position in the communication space.

The group which is already involved in the fibre rollout project in the telecommunications sector entered into a conditional share sale agreement with T&J Assets Holdings Sdn Bhd for the acquisition. TJE is principally involved in the provision of telecommunications network infrastructure solutions, encompassing civil as well as mechanical and electrical (M&E) engineering telecommunication infrastructure deployment. Presently, TJE primarily operates in Sarawak

The proposed acquisition will is said to enable OPCOM to diversify its business to include the provision of telecommunication network infrastructure solutions, through TJE which has been sub-awarded contracts for the implementation of Jendela Phase 1 Project in multiple locations across Sarawak.

According to Ong Soon Lim, Executive Director of Opcom, the proposed acquisition and diversification exercises are opportune as it will enable the company to offer more comprehensive solutions for the telecommunications industry, ranging from fibre optic cables to telecommunication network infrastructure solutions. Further, the proposed acquisition and diversification will provide it with an opportunity to enlarge its footprint in East Malaysia.

The implementation of Jendela Phase 1 (2020-2022) in Sarawak will support the state government’s aspiration to achieve developed status by 2030. In November 2021, the Federal Government of Malaysia announced an allocation of RM4.1 billion for Sarawak to implement Phase 1 initiative, expand and improve broadband services, and also for transition to 5G technology. Phase 2 (2022 – 2025) will focus on bridging the digital divide with the introduction of fit-for-purpose solutions, such as “Fixed Wireless Access” (FWA) technology and satellite broadband in about 1,400 locations too remote for fiberisation technology.

Under Budget 2022, the Government announced that JENDELA will be further intensified, and has allocated RM700 million to continue digital connectivity efforts in 47 industrial areas and 630 schools, especially those in rural areas. Further, the Government aims to expand 5G services to 36% of high-density areas including in major cities in Johor, Selangor, Penang, Sabah, and Sarawak.

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