KUALA LUMPUR (April 1): Electronic manufacturing services firm Betamek Bhd said on Monday it is acquiring tuner and car stereo maker Sanshin (Malaysia) Sdn Bhd for RM13.44 million from its Japanese owner.

The addition of Sanshin's products and its production capacity is expected to broaden Betamek's offerings and generate “favourable” profit margins, the company said in an exchange filing. Apart from a wider product range, Sanshin also offers access to clients in Japan, Hong Kong and Thailand, it noted.

Betamek will have immediate entry into Sanshin's “well-established” market for automotive, home appliance and industrial products, it said. Further, Sanshin is expected to support Betamek’s production of new products to be developed under a joint venture with Shenzen Zhonghong Technology Co, it said.

Sanshin, owned by Tokyo-listed Outsourcing Inc, mainly manufactures and assembles tuners, car stereos and related electronics parts. The company also trades as an international procurement centre with Malaysia, Japan, Hong Kong and Thailand as principal markets for its products.

“The proposed acquisition would further strengthen Betamek Group’s position in the electronic manufacturing services industry by enabling the group to expand its range of product offerings and its customer profile,” Betamek said.

The proposed acquisition is expected to be completed by the second quarter of the financial year ending March 31, 2025, the company said, adding that the planned purchase will be financed entirely though internally generated funds.