Kumpu­lan Perangsang ac­quires CPI Pe­nang for RM250m

New Straits Times - - BUSINESS / NEWS -

KUALA LUMPUR: Ku m p u l a n Perangsang Se­lan­gor Bhd (KPS) is ac­quir­ing an in­te­grated elec­tronic man­u­fac­tur­ing ser­vices com­pany, CPI (Pe­nang) Sdn Bhd, for RM250 mil­lion from HK Re­sources Sdn Bhd and TCS Re­sources Sdn Bhd.

Its chief ex­ec­u­tive of­fi­cer Ah­mad Fariz Has­san said CPI is fo­cused on high pre­ci­sion and highvalue prod­ucts and has con­sis­tently yielded higher mar­gins.

“We would like to be an in­te­gral part of the team that ac­cel­er­ates and pro­pels CPI to the next stage of rapid ex­pan­sion.

“The ac­qui­si­tion is aligned with our group’s vi­sion and as­pi­ra­tion to grow be­yond bor­ders in our aim to gen­er­ate long-term, sus­tain­able growth re­turns for our share­hold­ers,” he said in a state­ment yes­ter­day.

KPS said the ac­qui­si­tion was not sub­ject to the ap­proval of its share­hold­ers and is tar­geted to be com­pleted be­fore the end of the first quar­ter of this year.

It is ex­pected to con­tribute to KPS’ group fi­nan­cial per­for­mance.

“We are com­mit­ted to main­tain­ing the su­pe­rior qual­ity that CPI has con­sis­tently de­liv­ered to its cus­tomers through­out the years.

“A key driver to CPI’s his­tor­i­cal growth is the con­tin­u­ous ex­plo­ration and in­vest­ment in re­sources for ca­pac­ity ex­pan­sion and to drive im­prove­ment in op­er­a­tional ef­fec­tive­ness and ef­fi­cien­cies of CPI.”

KPS said the ac­qui­si­tion would be fully sat­is­fied in cash from its in­ter­nal funds and bank bor­row­ings.

In a fil­ing with Bursa Malaysia yes­ter­day, KPS said the ac­qui­si­tion would also pro­vide the com­pany stronger tech­ni­cal ex­per­tise, an end-to-end so­lu­tions provider, strong mar­ket rep­u­ta­tion and steady growth.

“CPI ex­pects the mo­men­tum of its per­for­mance to be sus­tain­able and will take ap­pro­pri­ate mea­sures to im­prove its op­er­a­tions,” it added.

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