Geotechnical instrumentation and testing service provider Glostrext Bhd is tapping into power system with a proposed acquisition of 70% stake in Powertecs System Sdn Bhd, a leading supplier of power system products, according to a press release circulated by Glostrext on Oct 11.
Glostrext has more than 30 years of operational experience in Malaysia and 15 years in Singapore. The Company provides pile instrumentation and static load test services, as well as structural and ground instrumentation and monitoring services for construction projects, completed buildings and infrastructures.
High-profile projects commissioned to Glostrext include the landmark Petronas Twin Towers and Merdeka PNB 118 in Kuala Lumpur, in addition, Tuas Water Reclamation Plant, Intra Airside Road Connection, Second Parallel Taxiway and Fire Station No 2 for Changi East at Changi Airport, Singapore.
Meanwhile, Powertecs System is principally involved in the trading of uninterruptible power system products supplied by European producer, Piller Power Systems, whose products are utilised in various sectors including energy, data centres, manufacturing, healthcare, communications and aviation. The acquired power product specialist is renowned for its good track record and promising long term upside potential in the power supply industry.
"The timing is apt for Glostrext to grow beyond our existing capabilities in construction instrumentation, testing and monitoring services, into the power system industry where demand is high amid global energy transition," said Mr Lee Ming Jean, Managing Director of Glostrext, adding that uninterruptible power supply system will add weight to Glostrext's existing suite of solutions to achieve long-term growth.
Under the corporate exercise, Glostrext, an ACE market listed company since August 2023, will issue RM2.1 million worth of new shares at an issue price of 21 sen per share, alongside RM2.1 million cash consideration to Chen Song Wie and Ng Chuee Choo, the vendors of the purchase consideration. The issuance of 10 million shares represents 2.46% of Glostrext's enlarged share capital post-acquisition.
For the financial year ended 31 December 2023, Powertecs System reported a profit after tax (PAT) of RM1.8 million on the back of RM57.7 million revenue. (PAT as a percentage of revenue: 3.12%)
Glostrext will seek shareholders' approval at an extraordinary general meeting, or EGM, to be held later for the acquisition of Powertecs System.
The acquisition exercise is expected to be completed by the first quarter of 2025.