KUALA LUMPUR (Sept 6): OSK Holdings Bhd (KL:OSK) is expanding its cable manufacturing operations by acquiring the assets of Universal Cable (M) Bhd, currently under liquidation, for RM85 million.

In a Friday filing with the local stock exchange, the conglomerate said its 97.47%-indirectly owned unit, Olympic Cable Company Sdn Bhd, had entered into sale and purchase agreements with Universal Cable to acquire its two manufacturing plants in Tebrau and Plentong, together with its land and machinery.  The total net book value of these properties and assets was RM146.04 million as of end-May.

Universal Cable, based in Kuching, primarily manufactures and sells telecommunication and power cables. The company was placed under liquidation on May 15 this year.

Olympic Cable, meanwhile, produces a wide range of cables, including copper, aluminum, fire-resistant, solar DC, fiber optic and transmission cables.

OSK will fully fund the acquisition with cash from internal sources, divided into three payments: RM1.7 million as a deposit paid on July 12, RM6.8 million within three business days of the agreement, and RM76.5 million due within two months.

OSK expects the acquisition to be completed in the fourth quarter of 2024.

“This strategic acquisition marks a pivotal moment in our growth trajectory," said OSK group managing director Ong Ju Yan, adding that it will also boost the group’s production volume and capabilities.

Ong said the move is crucial to expanding the group's presence in cable manufacturing and improving its ability to secure major contracts locally and internationally.

"We are confident that the acquisition will contribute positively to the financial performance of the group in the long run," he added.

Shares of OSK settled one sen or 0.65% lower at RM1.52 on Friday, valuing the company at RM3.18 billion. Year to date, the stock has risen by over 26%.