Binasat Communications Bhd entered into an agreement to purchase 255,000 ordinary shares or 51% equity interest in Borderless Connection Sdn Bhd (BCSB) for RM18.36 million.
In line with the proposed acquisition, the company intends to implement the proposed diversification of the core activities of Binasat and its subsidiaries by including the provision of utility infrastructure services including transmission and distribution network utility services as well as solar photovoltaic (PV) engineering, procurement, construction and operation (EPCC) facilities. .
“The board believes BCSB's business will provide additional revenue streams to the company and diversify its revenue base.
"In the future, the board expects the power utility business, according to the proposed acquisition, will contribute 25% or more to the company's net profit," he said in a filing to Bursa Malaysia.
Bernama reported that the move was also an initiative by the company to reduce its reliance on its existing business.
Meanwhile, following the proposed acquisition, BCSB intends to leverage on Binasat’s listing status as a public listed company in the ACE Market, reputation, industry network and resources to participate in more transmission and distribution projects.
The purchase fee will be funded through a combination of cash and shares.
