PETALING JAYA: Fabricator of design engineering equipment APB Resources Bhd is set to invest RM140 million to acquire 70 million shares or 10.41% of Globetronics Technology Bhd to expand into the electronic manufacturing services (EMS) and semiconductor industry.
Upon the completion of this proposed acquisition, APB will emerge as the second-largest shareholder in Globetronics, which is a player in the EMS and semiconductor sector. APB intends to appoint a corporate representative to the board of Globetronics.
APB believes that Globetronics is well-positioned within the expanding electrical and electronics (E&E) market in Malaysia.
Citing an IMR report, it said the market is on an upward trajectory, with projections indicating that E&E exports will reach RM629.1 billion in 2023 and continue to expand at a compound annual growth rate of 7.9%, potentially hitting RM867.83 billion by 2027.
“This positive market outlook reinforces APB group’s decision to invest in Globetronics as a strategic and timely move,” APB said in a statement.
Its board said that its investment in Globetronics marks an expansion into a high-growth industry.
“As the second-largest shareholder, we look forward to contributing significantly to Globetronics’ future direction and success. This acquisition is not just an expansion of our portfolio -it is a leap into a future of enhanced earnings potential and a stronger presence in the tech sector,“ it added.
Furthermore, the group expects to engage in equity accounting for this investment as an associate company, following a review with its auditors. This approach will allow it to recognise a share of Globetronics’ profits in line with its equity interest.
In addition, the financial move is anticipated to boost the group’s earnings and create an additional stream of income.
APB’s share price closed at RM2.68 today, giving the company a market capitalisation of RM303 million.
