D&O offers to acquire electroplating services firm for RM55m
11 Aug 2021
Electronic components maker D&O Green Technologies Bhd said it has made an offer to acquire precision electroplating services firm Syntronixs Asia Sdn Bhd for RM55 million.
The offer was made to the four shareholders of the firm, comprising individuals Johannes Nicolaas Peperkamp and Yong Kuan Ho as well as Dutch companies COO BV and M Van Ditshuzen Beheer BV.
The offer, made on Aug 9, is valid for three business days, the group said in a filing with Bursa Malaysia.
According to D&O, Syntronixs specialises in the provision of precision electroplating services for the semiconductor industry. The firm also provides effective surface cleaning solution and pre-surface-treatment process, namely deflashing and descaling on parts prior to the plating process.
D&O also noted that Syntronixs’ current operation is located adjacent to the group’s existing plant in Melaka, where there is vacant land area of 9,000 square metres which will be available for the group’s future expansion.
“Electroplating is one of the key manufacturing processes for Smart LED. The acquisition will significantly reduce the future investment needs of the group’s in-house electroplating facilities,” it said.
D&O said it plans to use the acquired platform to expand into leadframe manufacturing through new investment in moulding facilities with capacity sufficient to supply up to 30% of the leadframe needs of D&O’s 90%-owned subsidiary Dominant Opto Technologies Sdn Bhd.
“Leadframe is one of the key input materials for LED manufacturing. The planned expansion into leadframe manufacturing will further increase the supply security of leadframe in Dominant’s supply chain management,” the group said.
Besides the projected growth in its existing business, D&O said Syntronixs is expected to further benefit from increasing orders from Dominant as the latter ramps up its Smart LED business and planned future expansion into leadframe manufacturing.
Shares of D&O closed down nine sen or 1.73% at RM5.10, for a market capitalisation of RM6.06 billion.
Source: The Edge Markets