Shah Alam, Dec 18: APB Resources Berhad, a prominent name in design engineering equipment fabrication, has today announced a substantial foray into the Electronic Manufacturing Services (EMS) and semiconductor industry.
The company is set to invest RM140 million, acquiring a 10.41 per cent stake in Globetronics Technology Berhad, equivalent to 70.0 million shares.
Globetronics, a significant entity in the EMS and semiconductor market, is strategically positioned in Malaysia’s rapidly growing Electrical and Electronics (E&E) sector.
Insights from the IMR report suggest a robust growth trajectory for this market, with E&E exports expected to surge to RM629.10 billion in 2023.
The market is projected to continue its growth at a Compound Annual Growth Rate (CAGR) of 7.9 per cent, potentially reaching RM867.83 billion by 2027.
This promising outlook solidifies the strategic nature of APB’s investment in Globetronics.
With the completion of this acquisition, APB is poised to become the second-largest shareholder in Globetronics.
In a move to strengthen this partnership, APB plans to appoint a corporate representative to Globetronics’ board of directors.
APB intends to adopt equity accounting for this investment, as per discussions with its auditors.
This strategy will enable APB to recognize a proportionate share of Globetronics’ profits, aligning with its 10.41 per cent equity interest.
This strategic financial decision is expected to enhance APB Group’s earnings, adding a new revenue channel.
The Board of Directors of APB Resources Berhad expressed their enthusiasm: “Investing in Globetronics is a strategic step towards expanding into a rapidly growing sector.
As we become the second-largest shareholder, we are excited to play a significant role in guiding Globetronics towards future success.
This move represents not just portfolio diversification, but a leap into a future with increased earnings potential and a fortified presence in the technology industry.”
As of today afternoon, APB’s share price stood at RM2.65, reflecting a market capitalization of RM299.1 million.
Meanwhile, at Globetronics Technology Bhd (GTB), a leader in the OSAT and semiconductor industry, the recent changes in shareholder structure have not swayed the company’s commitment to operational excellence and shareholder value.
The acquisition move by APB Resources Bhd for a 10.4% stake in GTB involves transferring significant shares from the General Produce Agency and Ng Kweng Chong Holdings.
Despite this shift, GTB reassures stakeholders of its steady operational focus and plans for growth in new sectors like automotive and medical devices.
Positioned strongly in Malaysia’s expanding E&E market, GTB is actively venturing into advanced packaging and new product development.
This aligns with the IMR Report’s projection of substantial growth in Malaysia’s E&E exports, presenting ample opportunities for GTB’s expansion and enhanced shareholder value.
The company remains dedicated to its core business objectives, confidently navigating the changing market landscape to sustain its growth and success in the semiconductor industry.
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