Citaglobal executive chairman and president Tan Sri Mohamad Norza Zakaria (right) and iFACTORS founder Abu Bakar Sutan Taharudin (left).
KUALA LUMPUR: Citaglobal Bhd
is expanding the scope of its renewable energy and telecommunications business with the acquisition of a 30% stake in submarine cable systems company iFACTORS Sdn Bhd for RM25.2mil.
In a statement, Citaglobal said the deal is expected to be earnings accretive for the group, with the acquisition coming with a two-year net profit guarantee of RM21mil and iFACTORS having an orderbook of RM528mil.
“Citaglobal also has the option to purchase another 21% of iFACTORS once the profit guarantee of RM21mil has been met,” it said.
iFACTORS is principally involved in the business of maintenance and services of telecommunication equipment and components.
With this deal, Citaglobal will be well positioned to bid for subsea high voltage power cables jobs moving forward. Subsea cables have increased in importance in recent times, particularly with the advent of offshore renewable energy requiring export cables to bring the renewable energy ashore.
“We see a huge opportunity in welcoming iFACTORS into the Citaglobal family and supporting them in their next chapter. For Citaglobal Group, this acquisition unlocks immediate access to the lucrative submarine cable systems market.
“While the expertise and passion of the team at iFACTORS has led to their healthy orderbook and impressive growth, we have every intention of bringing iFACTORS to greater heights, in line with our strategy,” executive chairman and president Tan Sri Mohamad Norza Zakaria said.
