Opcom Holdings shareholders have approved the proposed acquisition of the entire equity interest in T&J Engineering Sdn Bhd for a total purchase consideration of up to RM90 million which is to be satisfied by a combination of cash and new ordinary shares in the group.
With the acquisition, Opcom will diversify to include the telecommunication network infrastructure solutions business.
According to Ong Soon Lim, Executive Director of OPCOM, “The acquisition of TJE will allow OPCOM to gain access to TJE’s business and network, and thus expand OPCOM’s core business to include the telecommunication network infrastructure solutions business, which encompasses but not limited to setting up of new telco related infrastructure, supply chain management, warehousing, and network maintenance and other value-added services such as connectivity services, security services, data centres and related internet access to cloud services.
The telecommunication network infrastructure solutions business is complementary and synergistic to OPCOM’s core business of fibre optic cables manufacturing and part of OPCOM’s growth strategy of diversifying into income-generating businesses that are profitable and sustainable over the long-term.”
Chairman Dato’ Mazlin Bin MD Junid, said the acquisition comes with a profit guarantee of RM60 million from FYE 2023 until FYE 2025, thus providing an additional income stream for OPCOM Group in the near term. Additionally, the company felt that this was an opportune time owing to the proliferation and inevitability of 5G.”
The inter-conditional proposals are expected to be completed in the first half of 2023.
