KUALA LUMPUR (Aug 1): Fiber optic manufacturer Opcom Holdings Bhd has proposed to acquire 5.39 million shares, representing 49% equity interest, in power transmission company Transgrid Ventures Sdn Bhd for up to RM98 million.

The transaction will be satisfied via a combination of cash and issuance of new shares in Opcom, the company said in a filing with Bursa Malaysia on Tuesday (Aug 1).

It added that the proposed acquisition will enable Opcom to diversify into the power generation and transmission businesses.

Opcom has entered into a conditional share sale agreement with M Saraswathy Manikum for the proposed acquisition of Transgrid Ventures and its subsidiaries, namely Transmission Grid Ventures Sdn Bhd, Raub Energy Ventures Sdn Bhd and Transgrid Borneo Sdn Bhd. “The proposed acquisition and diversification exercises will enable Opcom to strategically position itself in the electricity supply industry in Malaysia,” it said.

Transgrid Ventures is principally involved in the engineering, procurement, construction and commissioning (EPCC) of power transmission and distribution substation infrastructure, project management and engineering consultancy of power transmission and distribution infrastructure, as well as supply and maintenance of equipment for power transmission and distribution substations.

Transgrid Ventures serves the electricity supply industry in Malaysia and its customers comprise utilities companies as well as private corporate clients.

Its subsidiary Raub Energy Ventures Sdn Bhd is in the final stages of commissioning a renewable energy power plant using biomass feedstock in Raub, Pahang that will be capable of generating four megawatts of electricity to Malaysia’s National Grid upon its commercialisation, which is targeted in the fourth quarter of 2023.

The inter-conditional proposals are expected to be completed in the fourth quarter of 2023.

At the time of writing, Opcom shares were down 1.5 sen or 1.89% to 78 sen, valuing the group at RM299.53 million.