KHPT Holdings Bhd shareholders have approved the group’s proposed acquisition of a 100% stake in Ngai Cheong Metal Industries Sdn Bhd (NCMI) for RM19.5 million, paving the way for the automotive parts manufacturer to expand into high-precision metal stamping and manufacturing solutions serving both the automotive and electrical and electronics (E&E) sectors.
The approval was obtained at an EGM held immediately after the group’s AGM.
Under the proposal, KHPT will reallocate RM16.37 million from its IPO proceeds to partially fund the acquisition, with the remaining balance financed through internally generated funds and/or bank borrowings.
Upon completion, NCMI will become a wholly owned subsidiary of KHPT, providing the group with an immediate foothold in the precision metal stamping segment and access to a broader customer base across multiple industries.
To safeguard shareholder interests, the transaction includes a profit guarantee of RM7.5 million from the vendors covering the period from completion until the financial year ending Dec 31, 2028. The guarantee comprises a profit after tax target of RM1.5 million for the period ending FY26 and RM3 million annually for FY27 and FY28. A matching RM7.5 million retention sum will be held as security against the performance commitments.
The acquisition also includes a 10-year lease agreement for NCMI’s manufacturing facility in Puchong, ensuring operational continuity without requiring significant capital expenditure on industrial property.
Group Managing Director Datin Eloise See said the acquisition marks a significant step in KHPT’s diversification strategy, complementing its core automotive manufacturing business while broadening its exposure to new growth sectors.
She added that the enlarged group will seek to leverage cross-selling opportunities, pursue larger projects across multiple sectors and generate operational efficiencies through the integration of technical expertise, engineering capabilities and production facilities.
“The acquisition is expected to strengthen KHPT’s long-term earnings base by establishing a more diversified operational footprint across resilient industries, while enhancing its position as a precision manufacturing partner serving both automotive and E&E customers,” See said.
