Thursday 20 Jun 2024
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KUALA LUMPUR (Oct 2): Opcom Holdings Bhd has emerged as the new single largest shareholder of Binasat Communications Bhd after it bought 70 million shares, representing an 18.03% stake in the satellite network support service provider.

The block of shares was acquired from Binasat managing director Na Boon Aik via the fibre optics company's wholly owned Opcom VC Sdn Bhd, Binasat's filing showed.

Opcom on Sept 20 announced it was buying the stake from Boon Aik for RM39.2 million or 56 sen per share, which is 45.45% more than Binasat's closing price of 38.5 sen on Monday. At 38.5 sen, Binasat is valued at RM134 million.

With the stake sale, Boon Aik, who co-founded Binasat together with his brother Na Bon Tiam, ceased to be Binasat's shareholder. He also sold all 36.72 million warrants he held in the company. He pocketed RM46.63 million from the share and warrant disposals.

Opcom, in a statement, said the deal is a strategic acquisition that marks a significant milestone in Opcom's growth and expansion.

The inclusion of Binasat into the Opcom’s family will bring together the strengths and expertise of both organisations, further solidifying Opcom's position as a leader in the telecommunications industry, it said.

It expects customers of both companies to benefit from a broader range of products/services, improved customer support, and continued innovation.

"The completion of this acquisition reflects our commitment to strategic growth and innovation. We are excited about the opportunities the combination of our businesses bring and the value it will deliver to our customers, partners, and shareholders. Together, we are well-positioned to drive positive change in the telecommunications sector," said Opcom managing director Johnson Chang.

The acquisition comes 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.

Datuk Ong Choo Meng is Opcom's largest shareholder. Ong’s stake in the company about doubled to 31.74% as at July 2023, from 15.89% in June 2022.

Ong emerged as Opcom's substantial shareholder in Feb 2021 after buying over the 15.28% stake held by its co-founder Datuk Seri Mukhriz Mahathir, son of former prime minister Tun Dr Mahathir Mohamad.

Opcom's share price closed half a sen or 0.71% lower to 69.5 sen on Monday, bringing the group a market capitalisation of RM267 million.

This article was updated to show Na Boon Aik correctly as the managing director of Binasat Communications Bhd. The error is regretted.

Edited ByTan Choe Choe
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