SHAH ALAM, December 30 – APB Resources Berhad (“APB” or the “Group”), a leading design engineering equipment fabricator, has unveiled a substantial strategic investment in the Electronic Manufacturing Services (EMS) and semiconductor industry. The Group is set to acquire approximately 10.41% of Globetronics Technology Berhad (“Globetronics”), equivalent to 70.0 million shares, for a total cash consideration of RM140.0 million. Globetronics, a key player in the EMS and semiconductor sector, holds a strong position within Malaysia’s expanding Electrical and Electronics (E&E) market.
Projections from the IMR report suggest that E&E exports are poised to reach RM629.10 billion in 2023, with a projected Compound Annual Growth Rate (CAGR) of 7.9%, potentially reaching RM867.83 billion by 2027. This positive market outlook underscores the strategic timing and significance of APB Group’s investment in Globetronics. Upon the completion of this acquisition, APB will emerge as the second-largest shareholder in Globetronics, intending to appoint a corporate representative to the board of Globetronics. APB plans to implement equity accounting for this investment as an associate company, aligning with the Group’s auditors.
This strategic financial move is expected to enhance APB Group’s earnings and establish an additional income stream, positioning the company for a more robust presence in the tech sector. The Board of Directors of APB Resources Berhad expressed their enthusiasm, stating, “Our 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 of enhanced earnings potential and a stronger presence in the tech sector.”
