Mikro MSC Bhd has proposed to acquire the entire equity interest in Broadguard Sdn Bhd (BSB) for RM30 million, marking an expansion into the wholesale and distribution of cables and related products used primarily in security and surveillance systems.
Mikro said it entered into a conditional share sale agreement on Sept 9 with vendors Sie Chee Din and Wong Meng Jie to acquire 400,000 ordinary shares representing 100% of BSB’s issued share capital.
The purchase consideration will be satisfied entirely through the issuance of 51.72 million new Mikro shares at approximately 58 sen per share.
Upon completion of the proposed acquisition, BSB will become a wholly owned subsidiary of Mikro.
Mikro said the acquisition represents an opportunity to broaden its participation in the electrical and electronics (E&E) products value chain by adding wholesale and distribution capabilities to its existing engineering and manufacturing activities.
The group is currently principally involved in the E&E business, alongside the biomass fuel business through an associated company and its signage and interior fit-out operations.
BSB’s business focuses on the wholesale and distribution of cables and related products, primarily for use in security and surveillance systems.
Mikro said the business is complementary to its existing E&E operations and would broaden the group’s product offerings while providing access to additional customer segments and end-user markets.
