Opcom To Acquire 49 Pct Stake In Transgrid Ventures For Rm98 Mln, Diversify Into Power Business

KUALA LUMPUR, Aug 1 (Bernama) -- Opcom Holdings Bhd has signed a share sale agreement with vendor Datin Sri Saraswathy Manikum to acquire 5.39 million ordinary shares in Transgrid Ventures Sdn Bhd for RM98 million to be satisfied in shares and cash.

In a filing with Bursa Malaysia today, Opcom said the proposed acquisition amounts to a 49 per cent stake in TVSB and that it intends to diversify its business activities to include power generation and transmission, and related power business.

Opcom and its subsidiaries are principally involved in the manufacture of fibre optic cables and cable-related products as well as telecommunication network infrastructure solutions currently, the filing said.

TVSB and its subsidiaries are in the engineering, procurement, construction and commissioning (EPCC) of power transmission and related power business.

Transgrid group will become an Opcom associate following the proposed acquisition, and power generation and transmission business will be part of the enlarged Opcom group’s activities.

This includes EPCC, distribution substation infrastructure, project management, engineering consultancy of power transmission, and trading of biomass-related products, the filing said.

 Opcom’s board said the power infrastructure market has “good growth prospects, given its favourable outlook” and the proposed acquisition is “a good opportunity” for it to tap into the growing power infrastructure market.

Barring any unforeseen circumstances and subject to approvals, the proposal is expected to be completed in the fourth quarter of 2023.

At lunch break, Opcom shares slipped 0.63 per cent to 79 sen with 490,600 shares transacted.

-- BERNAMA