PETALING JAYA: Betamek Bhd, an original design manufacturer and a player in electronics manufacturing services for the automotive industry, has completed its acquisition of Sanshin (Malaysia) Sdn Bhd, an established player in the automotive electronics manufacturing sector.
As announced on April 1, Betamek has acquired 100% equity interest in Sanshin for a cash consideration of RM13.4 million. The acquisition is valued at a price-to-earnings multiple of 10 times, based on the audited profit after tax of RM1.3 million for Sanshin, reflecting both the strategic value and the financial health of the acquired entity.
Sanshin, is known for its expertise in manufacturing car audios and other electronics components, serving markets in Malaysia, Japan, Hong Kong and Thailand. The acquisition positions Sanshin as a wholly owned subsidiary of Betamek, significantly broadening Betamek's customer base and further cementing its market presence. The expanded clientele, coupled with a wider array of product offerings, reinforces Betamek's competitive edge and industry standing.
Betamak executive director Muhammad Fauzi Abd Ghani said that by integrating Sanshin’s expertise and established market presence with its own, the group is poised to diversify its customer base and expand its product offerings.
“This move aligns with our strategic vision to lead and innovate within the automotive electronics industry, driving forward the evolution of automotive electronics amidst a thriving market,” he added.
The inclusion of Sanshin’s established relationships with key automotive manufacturers in Japan, Hong Kong and Thailand will provide Betamek with immediate access to new markets and opportunities, facilitating smoother entry and fostering stronger, long-term partnerships. Additionally, Sanshin’s expertise in car audio systems and electronic components complements Betamek's existing product lines, allowing for a more comprehensive and diversified portfolio to meet the evolving demands of global automotive manufacturers.
