KUALA LUMPUR, June 23 — Binasat Communications Bhd has entered into a conditional share sale agreement with Nik Abdul Hakim Abd Razak and Mohd Solehuddin Yahya to acquire 255,000 ordinary shares or 51 per cent equity interest in Borderless Connection Sdn Bhd (BCSB) for RM18.36 million.
In conjunction with the proposed acquisition, Binasat Communications said it has proposed to undertake a diversification of the principal activities of the company and its subsidiaries to include provision of utilities infrastructure services including transmission and distribution network utility services as well as engineering, procurement, construction and commissioning (EPCC) of solar photovoltaic (PV) facilities.
“The board believes that BCS’s business will provide the group with an additional stream of income and diversify its earnings base,” it said in a filing with Bursa Malaysia today.
It said the proposed exercise also represented the company’s initiative to reduce its dependency on existing businesses.
Binasat Communications said the purchase consideration would be satisfied via RM5.36 million cash, funded via internally generated funds, while the remaining RM13 million via the issuance of 37.14 million new ordinary shares in Binasat Communications at an issue price of 35 sen each.
Going forward, it said pursuant to the proposed acquisition, the board expected the power utilities business to contribute 25 per cent or more of the net profits of the company and/or diversion of 25 per cent or more of the net assets of the company in the future.
It added that after the proposed acquisition, BCSB intended to leverage Binasat Communications’ listing status on ACE Market, reputation, industry network and resources to participate in more transmission and distribution network utility projects. — Bernama