KUALA LUMPUR (July 18): Cash-rich Globetronics Technology Bhd's (KL:GTRONIC) latest investment is the purchase of a 30.85% equity interest and 53.99% of Warrant C in loss-making Mpire Global Bhd (KL:MPIRE).
Globetronics paid RM45.05 million for a block of shares and Warrant C, according to the company's filing with Bursa Malaysia. Mpire, formerly known as Sand Nisko Capital Bhd, is involved in property construction and development, as well as fleet management services — including the trading and leasing of motor vehicles, among others.
In a separate filing with Bursa, Globetronics disclosed that it had invested RM60.07 million — equivalent to 19.49% of its latest audited consolidated net assets — over the past 12 months to acquire quoted securities.
However, no further details were provided on the specific securities purchased. It was declared that the market value of these securities stood at RM59.54 million.
Coincidentally, Mpire’s executive chairman Datuk Goh Soo Wee and non-independent non-executive director Teh Kok Liang have ceased to be the company’s substantial shareholders after their vehicle, Mayapada Asset Sdn Bhd, sold 277.2 million shares and 42 million units of Warrant C via a direct business transaction on Friday (July 18), according to the company’s bourse filing.
Mayapada sold Mpire shares at 11 sen apiece and Warrant C at nine sen apiece. The number of securities transacted was the same as Globetronic’s investment.
Goh is a former executive director of CSH Alliance, which is now known as Velocity Capital Partner Bhd (KL:VELOCITY).
Mpire’s share price was hovering near its all-time low at 10.5 sen, valuing the company at RM94.34 million.
In a press release, Globetronics said, “We view this acquisition in Mpire as a strategic opportunity that aligns perfectly with our commitment to sustained growth and diversification.
"By securing this substantial equity interest, we are well positioned to participate actively in Mpire's ongoing expansion and leverage potential synergies. We anticipate this collaboration will create long-term shareholder value, reinforcing our position in the industry."
In the financial year ended Dec 31, 2024 (FY2024), Mpire’s net loss widened to RM7.61 million from RM4.65 million a year earlier, despite revenue rising to RM34.47 million from RM19.47 million.
Globetronics, which has changed its financial year from March 31 to June 30, said the investment is expected to be earnings accretive, enhancing the group’s financial performance over the medium to long term. The acquisition was fully funded through internally generated funds and is not expected to materially impact its capital structure or gearing, ensuring continued financial stability.
Globetronics saw the emergence of two new substantial shareholders — Ooi Keng Thye holding 11.39% and APB Resources Bhd (KL:APB) 10.36% when the family of Ng Kweng Chong sold out its stake. These are the two largest shareholders of Globetronics currently.
For the quarter ended March 31, 2025, Globetronics reported a net profit of RM130,000 on revenue of RM25 million. No year-on-year comparison was provided due to the change in financial year.
As at end-March, Globetronics held RM127.16 million in cash with zero borrowings.
Meanwhile, Globetronics’ share price has slid to a 13-year low after its auditor’s resignation and a sell-off by institutional investors. The stock closed at 45 sen on Friday, valuing the company at RM303.92 million.