PETALING JAYA: Homegrown power distribution specialist and electrical distribution equipment manufacturer Powerwell Holdings Bhd has entered into a conditional share sale and purchase agreements with Ling Soon Kiong, Tian Nyan Fatt, Ting Ing Houng and Lee Joon Kian (collectively referred to as the vendors) to acquire a 49% equity interest each in Tenaga Kenari Sdn Bhd (TKSB) for RM12.5 million and Tenaga Kenari Marketing Sdn Bhd (TKMSB) for RM4.2 million.
Established in 1994, Tenaga Kenari is an electrical engineering company with over 30 years of experience in the design and manufacture of customised, high-performance electrical switchgear and control-gear assemblies.
The company offers a suite of electrical engineering solutions, including mechanical and electrical control systems, process-related control panels integrated with programmable logic controllers, building management systems and supervisory control and data acquisition solutions.
Backed by an in-house engineering team and a workforce of more than 80 skilled personnel, Tenaga Kenari has built a strong track record across diverse sectors such as semiconductor, high-tech manufacturing, utilities, infrastructure, petrochemical, renewable energy, as well as industrial and commercial facilities.
The company has successfully delivered more than 150 projects, predominantly in Sarawak, and has completed projects with an aggregate value exceeding RM100 million over the past 10 years.
In addition to customised solutions, Tenaga Kenari operates dedicated production lines for standardised electrical enclosures, supplying to Sarawak Energy Bhd.
Powerwell managing director Catherine Wong Yoke Yen said: “The proposed acquisition marks our expansion into East Malaysia and allowing us to tap on the vast opportunities in that region. It provides us with immediate access to new customers and industries while expanding our product portfolio, capabilities, and competencies. The combination of Tenaga Kenari’s bespoke engineering capability and scalable production supports sustainable growth and recurring business opportunities.”
She added that this synergistic move aligns with the group’s five-pillar growth strategy and builds on their mergers and acquisitions initiatives, following the acquisition of Firerex in April this year, which has started to contribute positively to the group.
The proposed acquisition comes with a profit guarantee by the vendors that Tenaga Kenari will achieve a cumulative profit after tax (PAT) of RM12 million for three financial years.
As such, the total purchase consideration translates into an implied price-to-earnings multiple of 8.5 times based on valuation of Tenaga Kenari of RM34 million and average PAT of RM4 million per annum.
“In addition to the strategic synergies, the proposed acquisition is expected to be earnings accretive. It is also expected to expand our capacity by serving as an extension of Powerwell’s production facilities. By combining Tenaga Kenari’s established customer base and deep industry and local experience with Powerwell’s execution capabilities and financial backing, we will be able to undertake larger projects in East Malaysia together. Ultimately, this will further strengthen our position as the leading homegrown power distribution specialist,” said Wong.
The proposed acquisition is expected to be completed by March 31, 2026, barring any unforeseen circumstances.
