KUALA LUMPUR (Oct 12): Steel manufacturer Malaysia Steel Works (KL) Bhd (KL:MASTEEL) on Monday announced the acquisition of a 51% stake in a high-voltage electrical engineering firm for RM12 million to expand into power infrastructure and data centre construction, as well as a proposed placement of nearly 4% of its issued share base to raise up to RM5.78 million for working capital.

The group said in a bourse filing that the acquisition of Anpec Global Corporation Sdn Bhd will allow it to tap into the latter's engineering capabilities and contracts with major utility companies, including Tenaga Nasional Bhd (KL:TENAGA) and Sabah Electricity Sdn Bhd.

Masteel has entered into a share sale agreement with Anpec founder and CEO Abd Rasid Mohamed Salleh for the acquisition. The purchase will be satisfied through RM3 million cash from internal funds, and the issuance of 45 million new Masteel shares at 20 sen apiece — a 7.93% premium to Masteel's five-day volume-weighted average market price (VWAMP) of 18.53 sen up to Oct 9.

This means Abd Rasid, who will retain a 49% interest in Anpec and continue overseeing its operations, will emerge as a substantial shareholder of Masteel with a 5.7% stake. This will be eventually diluted to 5.49% upon completion of the subsequent share placement.

Anpec specialises in high-voltage electrical infrastructure, substations and industrial electrical systems. It has an outstanding order book of RM107 million from six ongoing projects, with completion dates extending to 2028. It has also ventured into data centre-related power infrastructure, having completed a 275kV bulk electricity supply project for the Marmot Data Centre in Elmina West, Selangor, in December 2025.

The company is now bidding for roughly RM63 million worth of jobs involving TNB substations and high-voltage equipment testing services for Sabah Electricity.

Masteel executive vice-chairman Datuk Seri Tai Hean Leng said the acquisition would allow the group to combine its steel manufacturing operations with Anpec's expertise in power infrastructure engineering. The group is aiming to pursue opportunities arising from TNB's RM15 billion investment in the national electricity grid infrastructure, as highlighted under Budget 2027.

"We are positioned to execute larger green energy transition projects, providing green-certified steel alongside 132kV and 275kV substation engineering to connect large-scale solar facilities to the grid," he said in a statement.

The acquisition is targeted for completion by the end of 2026.

The subsequent share placement involves up to 29.48 million new shares, or 3.96% of its issued share base, to investors to be identified at an indicative price of 19.6 sen per share. The final price will be capped at a maximum discount of 10% to the five-day VMAMP before the price-fixing date.

Of the proceeds, RM5.53 million will be used for working capital, including utilities, staff costs and administrative expenses. The balance will be used to defray the proposal's expenses.

Together with the 45 million consideration shares to be issued for the Anpec acquisition, the group will be issuing up to 74.48 million new Masteel shares, equivalent to 10% of its existing issued share capital.

The group previously completed a private placement in August 2025, raising RM13.82 million from issuing 67.5 million new shares. Proceeds from that have since been fully utilised for working capital and related expenses.

Shares of Masteel, which manufactures steel billets, high-tensile deformed steel bars and mild steel round bars, rose 0.5 sen or 2.7% to close at 19 sen on Monday, valuing the company at RM141.9 million.