Tokyo, April 1: Betamek Berhad, a leading electronics manufacturing services provider for the automotive industry, has expanded its operations with the acquisition of Sanshin (Malaysia) Sdn. Bhd., a notable automotive electronics manufacturer.
The deal, finalized for RM13.4 million in cash on 29 March 2024, grants Betamek a 100 per cent equity interest in Sanshin.
This strategic acquisition, signed in Japan with OUTSOURCING Inc.—a Tokyo Stock Exchange-listed company with a market capitalization of approximately JPY220.4 billion (RM6.86 billion)—values Sanshin at a price-to-earnings multiple of 10.0 times, based on its audited profit after tax of RM1.3 million.
Sanshin, initially founded in 1985 as TWD Sanshin (Malaysia) Sdn. Bhd. and later renamed, specializes in the manufacturing of car audios and other electronic components, with a market presence in Malaysia, Japan, Hong Kong, and Thailand.
With this acquisition, Sanshin becomes a wholly-owned subsidiary of Betamek, enhancing the company’s customer base and reinforcing its competitive position in the market.
Muhammad Fauzi Abd Ghani, Executive Director of Betamek, remarked on the acquisition’s significance, highlighting it as a pivotal move for Betamek to innovate and lead in the automotive electronics sector. He pointed out the promising prospects for growth and innovation in automotive electronics, supported by Malaysia’s Total Industry Volume (TIV), which recorded 799,731 units in 2023 with a forecast of 740,000 units for 2024 despite global economic uncertainties.
The acquisition is part of Betamek’s broader strategy to elevate its market presence and product offerings in the automotive electronics industry.
This initiative is further strengthened by a recent joint venture and shareholder agreement with Shenzen Zhonghong Technology Co., Ltd. on 6 March 2024, aimed at developing Advanced Driver Assistance Systems (ADAS) and smart cockpit solutions targeted at the ASEAN market.
This collaboration is expected to boost Betamek’s portfolio in innovative electronics and technology solutions, catering to the evolving needs of the automotive and electric vehicle sectors across Malaysia and Southeast Asia.
Media & PR: editor@dailystraits.com. Copyright 2021–Present DailyStraits.com. All rights reserved.