PETALING JAYA: Globetronics Technology Bhd’s wholly owned subsidiary, Globetronics (KL) Sdn Bhd, has acquired a significant stake in Mpire Global Bhd for RM45.05 million.
The investment involves acquiring 30.85% of Mpire’s ordinary shares and a substantial holding of Mpire warrants, positioning Globetronics as a strategic associate in Mpire.
The acquisition aligns with Globetronics’s long-term transformation strategy, offering promising prospects for value creation and sustainable earnings growth.
“We view this acquisition in Mpire as a strategic opportunity that aligns perfectly with our commitment to sustained growth and diversification.
“By securing this substantial equity interest, we are well-positioned to participate actively in Mpire’s ongoing expansion and leverage potential synergies.
“We anticipate this collaboration will create long-term shareholder value, reinforcing our position in the industry,“ a Globetronics spokesperson said in a statement.
Mpire and its subsidiaries primarily operate in property construction and development, fleet management services which include the trading and leasing of motor vehicles, provision of integrated fleet management solutions, and related after-sales services and financing services, catering to both consumer and commercial segments.
The acquisition is expected to be earnings accretive for Globetronics, strengthening the group’s financial performance over the medium and the long term.
Funded entirely from internally generated funds, the acquisition will not materially affect Globetronics’ capital structure or gearing position, ensuring continued financial stability.
The acquisition was executed through both off-market and open market transactions, reflecting Globetronics’ strategic intent and proactive investment approach. There are no contingent liabilities or guarantees arising from this acquisition, reinforcing the prudent financial management principles upheld by the group.
After a comprehensive evaluation, Globetronics believes this investment is in the best interests of the group and its stakeholders, providing both strategic benefits and long-term financial returns.
