AFTER recently diversifying into property development, office furniture maker AHB Holdings Bhd has taken a dive into the electric vehicle (EV) industry after announcing a memorandum of agreement (MOA) to acquire of 100% equity in KSP Vista Sdn Bhd.
The deal was sealed with AHB entering into a share sale agreement with vendor Kok Seng Ping. KSP which business is based in Bandar Baru Puchong is principally involved in the import and marketing of e-motorcycles in addition to the buying, selling, renting and operation of self-owned or leased real estate.
According to KSP Vista, it has received a letter of intent dated Dec 15, 2023 from Pelaburan Mara Bhd (PMB) for the order of 100,000 e-motorcycles.
A letter signed by Pelaburan Mara Bhd’s chairman Datuk Mohamad Razali Mohamad Rahim stated that PMB has examined the proposal put forth by KSP Vista and has agreed to purchase the said quantity of e-motorcycles following a market review subject to an evaluation, due diligence process and sale and purchase agreement agreed by both parties.
It is expected that a successful acquisition of KSP Vista will enable AHB to have directly entered the e-motorcycle segment and potentially be receiving the largest number of e-motorcycle orders in the history of Malaysia.
AHB began in earnest to enter the EV industry in July 2023 following an attempt to acquire a 51% stake in local EV company CAF Motors Sdn Bhd for RM10 mil amid a major corporate restructuring which included the appointment of Johor princess Tunku Kamariah Aminah Maimunah Iskandariah Sultan Iskandar (eldest sister to Johor ruler Sultan Ibrahim who is also Malaysia’s future Yang di-Pertuan Agong) as the group chairperson.
With the merger and acquisition (M&A) of KSP Vista, AHB can expect its order of 100,000 e-motorcycles from PMB to contribute to the group’s revenue and profits for its financial year ended FY3/2024 and beyond.
At the close of today’s trading, AHB was unchanged at 14.5 sen with 7.08 million shares traded, thus valuing the company at RM91 mil. – Jan 8, 2024