BSL Corp extends semicon sector exposure via S’porean biz acquisition

THE semiconductor segment will form a new pillar of growth for BSL Corp Bhd while complementing its current operations as the group transitions to become an electronic manufacturer services (EMS) company.

This follows the inking of a memorandum of understanding (MOU) to acquire Singapore-based SD Unify Pte Ltd which operates an international procurement office centre that connects the overseas supply chain for semiconductor original equipment manufacturers’ (OEM) approved vendor list components.

This is complemented by SD Unify’s “one-stop solution” concept for the manufacturing, sourcing and supplying of electro-mechanical products for semiconductor producers.

“Given the current market demand, the proposed acquisition of SD Unify is timely for BSL Corp to extend its market reach in the semiconductor sector,” commented the company’s executive director Brian Hoo Wai Keong.

“With this proposed acquisition, BSL Corp will be able to increase its exposure in semiconductors industry. This is part of BSL Corp’s revitalisation strategy to fast-forward our exposure in the semiconductor area.”

BSL Corp’s MOU with SD Unify is for a period of three months after which both parties are expected to sign a definitive agreement within that period.

The proposed acquisition is expected to dovetail with BSL Corp’s announcement last Friday (Sept 3) of a proposed private placement to enhance and expand its existing semiconductor manufacturing capacity.

In a related development, Hoo said BSL Corp has embarked on an enhancement exercise to expand the company’s gross floor area by 1,950 sq metres to 25,039 sq metres.

This will include the reconfiguration of the existing productions lines and additional capital expenditure to upgrade and install new production lines. The re-configuration will also include enhancing the current low volume high mix production to include higher value-add and margin products.”

“Currently, BSL Corp’s orders are high due to high volume of backlogs from its customers, thus enabling the company to record consecutive net profit for the past four quarters up to May 31, 2021,” added Brian Hoo.

The company is also engaged in a corporate exercise which entails a new issuance of up to 30% new shares based on the enlarged share capital base after share split involving a subdivision of every one existing ordinary share into two shares.

Finally, BSL Corp would declare bonus issue of one free warrant for every two shares held after the share split and private placement.

At 12.15pm, BSL Corp was up 16 sen or 13.22% to RM1.37 with 4.22 million shares traded, thus valuing the company at RM134 mil. – Sept 6, 2021

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