In a Bursa Malaysia filing, the fabricator of design engineering equipment said the share sale deal was inked with General Produce Agency Sdn Bhd and Ng Kweng Chong Holdings Sdn Bhd to purchase their respective 6.89% and 3.52% stakes in Globetronics.

“The proposed acquisition will result in a diversion of more than 25% of APB’s net assets and its subsidiaries into the Globetronics investment.

“APB will be seeking the approval of its shareholders at an extraordinary general meeting to be convened for the proposed diversification under paragraph 10.13 of the Main Market Listing Requirements of Bursa Malaysia Securities Bhd,” it said.

On the completion of this proposed acquisition, APB will emerge as the second-largest shareholder in Globetronics.

APB said it intends to appoint a corporate representative to the board of Globetronics, further solidifying the group’s commitment and partnership.

“APB expects to engage in equity accounting for this investment as an associate company, following a review with the group’s auditors.

“This approach will allow APB to recognise a share of Globetronics’s profits, in line with the 10.41% equity interest,” it said.

APB added that the strategic acquisition is anticipated to boost the group’s earnings and create an additional income stream.

As at 5pm, APB Resources’s share price was down by one sen or 0.37% at RM2.68, giving it a market capitalisation of RM302.5 million.

Meanwhile, Globetronics’s share price was also down by seven sen or 4.44% at RM1.72, giving it a market capitalisation of RM1.16 billion.