Glostrext alternate director to Ir. Dr. Lee Sieng Kai, Lee Ming Jean
KUALA LUMPUR: Geotechnical instrumentation and testing service provider, Glostrext Bhd
is diversifying into the provision of power system products with a proposed acquisition of 70% stake in Powertecs System Sdn Bhd for RM4.2mil in a cash and share deal.
Powertecs is principally involved in the trading of power supply system products manufactured and supplied by European uninterrupted power supply system producer Piller Power Systems.
“The timing is apt for Glostrext to grow beyond our existing capabilities in construction instrumentation, testing and monitoring services, and into the power system industry where demand is high amid the global movement of energy transition,” said Lee Ming Jean, alternate director to Glostrext managing director Lee Sieng Kai.
“With long-term growth prospects in the electronics and data centre sectors firmed up, uninterruptible power supply systems will be in demand.
“This bodes well for Powertecs and the wider Glostrext Group, who is able to incorporate power services into our suite of solutions to gain bigger footprint in Malaysia and Glostrext’s other existing regional markets,” he added.
Under the exercise, Glostrext will issue RM2.1 million worth of new shares at an issue price of 21 sen per share, alongside RM2.1mil cash consideration to Chen Song Wie and Ng Chuee Choo as the purchase consideration. The issuance of 10.0 million shares represents 2.46% of Glostrext’s enlarged share capital post-acquisition.
For the financial year ended Dec 31, 2023 (FY23), Powertecs reported a profit after tax of RM1.8mil on revenue of RM57.7mil.
Glostrext will seek shareholders’ approval at an extraordinary general meeting (EGM) to be held later for the acquisition of Powertecs, for its diversification into the trading of electrical appliances, generators, alternators and related products, and for the listing and quotation of the consideration shares.
Barring any unforeseen circumstances, the exercise is expected to be completed by the first quarter of 2025.
