Saturday 13 Apr 2024
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KUALA LUMPUR (Jan 12): Hextar Capital Bhd (HexCap) has completed the acquisition of a 6.75% stake in Binasat Communications Bhd (Binacom), raising its stake in the satellite network support service provider to 24.78%.

HexCap, formerly known as Opcom Holdings Bhd, said that following the acquisition, Binacom is now an associate company.

HexCap on Oct 26 last year proposed the acquisition of the 6.75% stake from four vendors — Dynamic Paradigm Sdn Bhd, Lim Yau Siong, Sim Winn Pin and Poh Kok Yeong — for RM14.68 million in cash.

In a statement on Friday, HexCap said the investment in Binacom would have a positive impact on the group's future earnings, as it enables the group to utilise Binacom as a separate platform, accelerating its expansion in the telecommunications sector and strengthening its position in tenders for future contracts.

"The successful conclusion of this acquisition underscores our dedicated pursuit of strategic expansion and innovation," said HexCap managing director Johnson Chang. "We are thrilled about the potential that the amalgamation of our businesses holds, and the substantial value it is poised to offer to our customers, partners, and shareholders."

Binasat, in a separate statement, said the investment by HexCap is a a strong vote of confidence in the group's vision and potential.

"This move will fortify the company’s position as a key player in providing telecommunications support services for satellite, mobile, and fibre optic networks, as well as transmission and distribution for network utility infrastructure construction services," added Binasat.

HexCap shares closed 1.5 sen or 2.52% lower at 58 sen on Friday, giving the group a market capitalisation of RM220.85 million. Binasat closed one sen or 3.28% lower at 29.5 sen, valuing the group at RM112.76 million.

Edited ByS Kanagaraju
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