Mikro MSC Bhd has proposed to acquire the entire equity interest in Broadguard Sdn Bhd (BSB) for RM30 million, to be fully satisfied through the issuance of new Mikro shares.
The proposed acquisition involves 400,000 ordinary shares in BSB, representing 100% of its issued share capital.
Mikro will issue 51.72 million new ordinary shares at an issue price of 58 sen per share to fund the transaction.
In a supplementary announcement, the company said the RM30 million purchase consideration was agreed on a willing-buyer, willing-seller basis after taking into account an independent valuation by Asia Equity Research Sdn Bhd.
The valuer assessed BSB’s fair equity value at between RM27.67 million and RM30.80 million, placing the agreed purchase price near the upper end of the valuation range.
Asia Equity Research used the free cash flow to firm methodology as its primary valuation approach.
The valuation was based on BSB’s projected free cash flows from FYE2027 to FYE2031, together with a terminal value, discounted at a weighted average cost of capital of 8.69%.
The WACC incorporated a cost of equity of 10.94% and an after-tax cost of debt of 5.62%, based on BSB’s capital structure as at FYE2026.
The valuation also assumed a long-term steady-state growth rate of between zero and 1% under the lower and upper valuation scenarios respectively.
A 25% discount for lack of marketability was applied to reflect BSB’s status as a private, unlisted company.
Asia Equity Research also carried out a relative valuation analysis as a secondary cross-check.
At the RM30 million purchase consideration, the transaction implies a price-to-earnings multiple of 13.97 times.
This compares with an implied range of 12.88 times to 14.34 times under the valuer’s assessed equity value range.
The selected Malaysian-listed comparable companies traded at P/E multiples ranging from 7.12 times to 35.97 times, with a median of 14.35 times.
Mikro said the valuer concluded that the RM30 million purchase price falls within the assessed fair-value range and that the implied transaction multiple is within the range of comparable listed companies.
The acquisition, if completed, will make Broadguard a wholly owned subsidiary of Mikro.
