KUALA LUMPUR (Sept 20): Opcom Holdings Bhd is buying a 18.03% stake or 70 million shares in ACE Market-listed Binasat Communications Bhd from the latter’s managing director Na Boon Aik for RM39.2 million as part of its venture into the satellite telecommunications business.
The acquisition came less than two months after Opcom announced a plan to buy a 49% stake in Transgrid Ventures Sdn Bhd for RM98 million, via a cash-plus-share deal, to diversify into the power transmission and distribution business.
Opcom’s investment in Binasat is set to reduce Na’s shareholding in Binasat to 0.88% or 3.44 million shares.
This means Opcom will be replacing Na as Binasat’s single-largest shareholder.
Opcom’s acquisition price of 56 sen per Binasat share is equivalent to a 27% premium to Binasat’s last trading price of 44 sen at Wednesday's noon market break.
Opcom said the proposed acquisition presents a good fit for its investment strategies to diversify its business into other segments, such as Binasat’s mobile network engineering services, fibre network engineering services, and the satellite-hub, power and telecommunications infrastructure businesses.
“With Binasat’s established track record, strong order book and network of clients, Opcom will be able to leverage Binasat as a separate platform to accelerate its expansion in the telecommunications sector, and strengthen Opcom’s position in tenders for future contracts,” said Opcom in a stock exchange filing on Wednesday.
Opcom said the acquisition, which will be funded by internally generated fund or borrowings, is expected to be concluded during the first week of October.
“We see immense potential in this acquisition. Binasat has a solid reputation for excellence in providing crucial support services to the telecommunications landscape,” said Opcom managing director Johnson Chang in a statement.
“With this acquisition, we not only expand our footprint in the telecommunications sector, but also diversify into the power utilities business, a strategic move that positions us for continued growth and success,” he added.
In the same statement, Na conveyed optimism about the acquisition, highlighting the synergistic opportunities it presents.
“Opcom’s acquisition of interest in Binasat represents a strategic alignment of our capabilities and resources. We believe that through the partnership, we can deliver even greater value to our clients and stakeholders. We are committed to a seamless integration process, and are excited about the possibilities ahead together," he said.
Opcom was trading at 70 sen a share at Wednesday's noon market break, up one sen or 1.45%, valuing it at RM268.82 million.
Shares in Binasat, meanwhile, were trading half a sen or 1.12% lower at 44 sen, giving it a market capitalisation of RM170.85 million.
Binasat has climbed 57% since the beginning of August.