KUALA LUMPUR: APB Resources Bhd is acquiring a 10.41 per cent interest in Globetronics Technology Bhd, for RM140.0 million, a move which will make it the group's second largest shareholder in Globetronics.
Globetronics, a key player in the electronic manufacturing services and semiconductor industry in Malaysia.
According to the IMR report, electrical and electronics (E&E) exports will reach RM629.10 billion in 2023 and continue to expand at a compound annual growth rate (CAGR) of 7.9 per cent, potentially hitting RM867.83 billion by 2027.
"This positive market outlook reinforces APB Group's decision to invest in Globetronics as a strategic and timely move," it said in a statement.
APB board of directors said its investment in Globetronics marks a strategic expansion into a high-growth industry.
"As the second-largest shareholder, we look forward to contributing significantly to Globetronics' future direction and success. "This acquisition is not just an expansion of our portfolio; it is a leap into a future ofenhanced earnings potential and a stronger presence in the tech sector," it said.
APB plans 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' profits in line with the 10.41 per cent equity interest."Such a strategic financial move is anticipated to boost APB group's earnings and create an additional stream of income," it added.