Kumpulan Perangsang acquires CPI Penang for RM250m

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.