KUALA LUMPUR (Oct 24): Kejuruteraan Asastera Bhd (KAB), a mechanical and electrical (M&E) engineering company, seeks to accelerate its market presence in Asean via the acquisition of Thai firm Energy Optimization (Thailand) Co Ltd (EOT).
In a statement today, KAB said the acquisition will also help it overcome market entry barriers.
The group entered into a shares purchase and sale agreement with Chanchai Kitprotpisuth to acquire 24,000 shares or an 80% stake in EOT for 4.64 million baht (RM642,176).
EOT is principally engaged in design and implementing of energy saving equipment.
“The company has 11 energy performance contract currently, including two Robinson Department stores under the Central Group, one of the largest real estate conglomerates in Thailand. The retail segment of Thailand has been thriving due to the strong tourists’ arrivals," said KAB managing director Datuk Lai Keng.
"This acquisition will enable KAB to expand its operations in Thailand. KAB is also exploring other Asean markets for regional expansion," he added.
The proposed acquisition is only expected to be completed by the first quarter of 2020.
At 2.58pm, KAB shares were up one sen or 1.64% at 62 sen, with 197,700 shares done, bringing a market capitalisation of RM219.48 million.