BETAMEK ACQUIRES AUTO ELECTRONICS MANUFACTURER SANSHIN FOR RM13.4 MLN

KUALA LUMPUR, April 1 (Bernama) -- Electronics manufacturing services (EMS) provider Betamek Bhd has acquired Sanshin (Malaysia) Sdn Bhd for RM13.4 million. 

Sanshin is an established player in the automotive electronics manufacturing sector and is renowned for its expertise in manufacturing car audios and other electronics components, serving markets in Malaysia, Japan, Hong Kong and Thailand.

In a statement today, Betamek said it had entered into a share purchase agreement on Friday (March 29) with OUTSOURCING Inc., a public listed company on the Tokyo Stock Exchange.

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The agreement, inked in Japan, secures Betamek a 100.0 per cent equity interest in Sanshin.

Betamek executive director Muhammad Fauzi Abd Ghani said the acquisition is a testament to Betamek’s strategic vision to lead and innovate within the automotive electronics industry.

“By integrating Sanshin’s expertise and market presence, it is setting a new benchmark for excellence and driving forward the evolution of automotive electronics amidst a thriving market, as evidenced by Malaysia’s impressive Total Industry Volume (TIV),” he said.

The acquisition is valued at a price-to-earnings multiple of 10.0 times, based on the audited profit after tax of RM1.3 million for Sanshin, reflecting both the strategic value and the financial health of the acquired entity.

It will also position Sanshin as a wholly-owned subsidiary of Betamek, significantly broadening Betamek’s customer base and further cementing its market presence. 

Betamek said the expanded clientele and a wider array of product offerings reinforce its competitive edge and industry standing.

-- BERNAMA