KUALA LUMPUR (Sept 26): Hextar Capital Bhd (KL:HEXCAP) is buying a further 3.19% stake in Binasat Communications Bhd (KL:BINACOM), raising its equity interest in the telecommunications support service provider to 25.73%.
Hextar Capital is acquiring the stake, comprising 19.25 million shares, at 21 sen apiece or RM4.04 million, from Cosmopolitan Avenue Sdn Bhd, Por Teong Eng and Lim Yao Ying, according to the company’s bourse filing on Friday.
Cosmopolitan Avenue is owned by Datuk Ng Yee Teck and Datuk Cheah Joi Yong via the pair’s vehicle, Mammoth Empire Holdings Sdn Bhd. Hextar Capital noted Por and Lim are not connected in any manner to the company.
The 21 sen price-tag was a 75% premium to the five-day volume-weighted average market price of Binacom shares up to Sept 11 of 12 sen, according to Hextar Capital.
Hextar Capital is buying the stake through its wholly owned unit Opcom VC Sdn Bhd. In June, Opcom VC had purchased a 6.62% stake in Binasat from Cosmopolitan Avenue at the same price.
Opcom VC is principally involved in project management services, including supply of cables, hardware and accessories, engineering consultation, information technology software and services management, the company said.
“The board is of the view that the investment in Binacom will have an accretive effect on the earnings of Hextar Capital, moving forward, as it will be able to leverage on Binasat Communications as a separate platform to accelerate its expansion in the telecommunications sector and strengthen the group’s position in tenders for future contracts,” Hextar Capital said.
Hextar Capital is Binasat’s largest shareholder via Opcom VC. Other substantial shareholders in Binasat are Na Bon Tiam with 9.09% and Mohd Solehuddin Yahya with 5.79%.
The acquisition is expected to be completed by the fourth quarter this year.
Shares in Hextar Capital ended one sen or 4.55% higher at 23 sen, valuing the company at RM133.64 million. Binasat Communication shares closed unchanged at 12 sen, giving the company a market capitalisation of RM72.51 million.