APB plans to diversify into semiconductor industry with RM140 mln Globetronics equity acquisition

APB plans to diversify into semiconductor industry with RM140 mln Globetronics equity acquisition

18 Dec 2023

APB Resources Bhd, a fabricator of design engineering equipment, plans to acquire 70 million shares or 10.41 per cent stake in Globetronics Technology Bhd, an electronic manufacturing services and semiconductor company, for RM140 million.

In a filing with Bursa Malaysia today, the group said the share sale deal was inked with General Produce Agency Sdn Bhd and Ng Kweng Chong Holdings Sdn Bhd to purchase their respective 6.89 per cent and 3.52 per cent stakes in Globetronics.

“The proposed acquisition will result in a diversion of more than 25 per cent of APB’s net asset and its subsidiaries into the Globetronics investment.

“APB will be seeking the approval of its shareholders at an extraordinary general meeting to be convened for the proposed diversification under paragraph 10.13 of the Main Market Listing Requirements of Bursa Malaysia Securities Bhd,” it said.

APB said it intends to appoint a corporate representative to the board of Globetronics, further solidifying the group’s commitment and partnership.

“APB expects to engage in equity accounting for this investment as an associate company, following a review with the group’s auditors.

“This approach will allow APB to recognise a share of Globetronics’ profits, in line with the 10.41 per cent equity interest,” it said.

APB added that the strategic acquisition is anticipated to boost the group’s earnings and create an additional income stream.

Source: Bernama