Aztech Global unit to acquire manufacturing facility in Malaysia for RM66.8m

MAINBOARD-LISTED Aztech Global : 8AZ 0% on Monday (Nov 14) said its wholly-owned Malaysia subsidiary IOT Manufacturing will acquire another manufacturing facility in Johor for RM66.8 million (S$20 million).

This will expand the group’s manufacturing capacity for Internet of Things (IoT) devices and data-communication products in Malaysia to meet demand from existing and potential new customers, it said in a bourse filing.

The 300,000 square feet facility at Pasir Gudang is on a land area of about 9.11 acres and is closely located to the group’s facility at Setia Business Park in Johor. Operations are expected to commence in the second quarter of 2023.

The acquisition will be funded via the company’s initial public offering (IPO) proceeds and bank borrowings. It raised S$198.4 million of gross proceeds during its IPO in March 2021.

The sum of RM66.8 million was arrived at after arm’s length negotiations and on a willing buyer, willing seller basis.

It took into account the group’s strategic considerations, prevailing market conditions and the market value of the property based on the valuation report, among other factors.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

The group added that it has “significantly strengthened its balance sheet and manufacturing capabilities since its successful transformation in 2018”.

Michael Mun, chairman and chief executive officer of Aztech Global, said the acquisition of the facility in Pasir Gudang will support the group’s expanded design and manufacturing capabilities to meet existing customer needs and capture new growth opportunities.

Shares of Aztech Global closed at S$0.84 on Monday, down S$0.01 or 1.2 per cent before the announcement.