KUALA LUMPUR: Opcom Holdings Bhd, a manufacturer of fibre optic cables, plans to diversify its business activities to include power generation and transmission businesses with the purchase of a 49 per cent interest in Transgrid Ventures Sdn Bhd (TVSB) for RM98 million.
In a filing with Bursa Malaysia Securities, Opcom said Transgrid Ventures is principally involved in engineering, procurement, construction and commissioning (EPCC) of power transmission and distribution substation infrastructure.
It also serves the electricity supply industry in Malaysia and its customers comprise utilities companies as well as private corporate clients.
Opcom said Transgrid Ventures' subsidiary Raub Energy Ventures Sdn Bhd is also in the final stage of constructing and commissioning a renewable energy power plant using biomass feedstock (specifically palm oil empty fruit bunches) in Raub, Pahang, that will be capable of generating 4 megawatt of electricity to Malaysia's National Grid, upon its commercialisation which is targeted for the fourth quarter of 2023.
Opcom has entered into a share sale agreement with Datin Saraswathy Manikum to acquire a 49 per cent stake or 5.39 million shares in TVSB, to be satisfied via a combination of cash and new shares in Opcom.
The shares portion amounting to RM49 million shall be satisfied via the issuance of 62.9 million new ordinary shares, or a 14 per cent interest, in Opcom at an issue price of RM0.7785 per share.
The balance of up to RM49 million shall be satisfied via cash, of which RM34.3 million is tied to the performance of TVSB ).
Opcom will seek shareholders' approval for the proposed diversification as the group is currently not involved in the power generation and transmission business.