The shareholders also approved the company’s plan to expand its scope of business to include the telecommunications network infrastructure solutions sector, at its extraordinary general meeting (EGM) yesterday.
“The acquisition of TJE would be satisfied by a combination of cash and new ordinary shares in Opcom,” the company said in a filing with Bursa Malaysia.
Executive director Ong Soon Lim said TJE’s acquisition would allow Opcom to gain access to the former’s business and network and thus, expand its core operations to include the telecommunication network infrastructure solutions sector.
This would encompass setting up new telecommunications-related infrastructure, supply chain management and warehousing, and network maintenance and other value-added services such as connectivity services, security services, data centres and related internet access to cloud services, he added.
“The telecommunication network infrastructure solutions business is complementary and synergistic to Opcom’s core business of fibre optic cables manufacturing and part of our growth strategy of diversifying into income-generating businesses that are profitable and sustainable over the long term,” Ong said.
Chairman Mazlin Md Junid said the acquisition came with a profit guarantee of RM60 million from the financial year (FY) 2023 until FY2025.
“It will provide an additional income stream for Opcom group in the near term. Additionally, we felt that this was an opportune time owing to the proliferation and inevitability of 5G,” he added.
Opcom said the acquisition’s inter-conditional proposals are expected to be completed in the first half of 2023.
Opcom was incorporated 1994 and was listed on the then Mesdaq Market of the Bursa Malaysia in 2003.
Th company also serves the telecommunications and power utilities industries through its engineering services, and acts as distribution agent and solution provider for telecommunications products in Malaysia.
Incorporated in 2013, TJE is principally involved in the provision of telecommunications network infrastructure solutions, encompassing civil as well as mechanical and electrical (M&E) engineering telecommunication infrastructure deployment.
At 9.47am today, Opcom’s share price rose 3 sen or 4.1% to 76 sen, giving it a market capitalisation of RM209.3 million.