BETAMEK FINALISES ACQUISITION OF SANSHIN, BROADENING CUSTOMER REACH AND PRODUCT PORTFOLIO
Strategic Move to Harness Sanshin’s Expertise and Enhance Betamek’s Market Position in Automotive Electronics
KUALA LUMPUR, 28 JUNE 2024 — Betamek Berhad (“Betamek” or the “Company”), an Original Design Manufacturer (“ODM”) and a leading player in electronics manufacturing services (“EMS”) for the automotive industry, is pleased to announce the completion of its acquisition of Sanshin (Malaysia) Sdn. Bhd. (“Sanshin”), an established player in the automotive electronics manufacturing sector.
As announced on 1 April 2024, the agreement secures a 100.0% equity interest in Sanshin for Betamek, with a cash consideration set at RM13.4 million. This acquisition is valued at a price-to-earnings multiple of 10.0 times, based on the audited profit after tax of RM1.3 million for Sanshin, reflecting both the strategic value and the financial health of the acquired entity.
Sanshin, established as TWD Sanshin (Malaysia) Sdn. Bhd. in 1985 and later renamed, is renowned for its expertise in manufacturing car audios and other electronics components, serving markets in Malaysia, Japan, Hong Kong, and Thailand. This acquisition positions Sanshin as a wholly-owned subsidiary of Betamek, significantly broadening Betamek’s customer base and further cementing its market presence. The expanded clientele, coupled with a wider array of product offerings, reinforces Betamek’s competitive edge and industry standing.
Encik Muhammad Fauzi Bin Abd Ghani, Executive Director of Betamek commented, “The completion of this acquisition marks a pivotal moment for Betamek. By integrating Sanshin’s expertise and established market presence with our own, we are poised to diversify our customer base and expand our product offerings. This move aligns with our strategic vision to lead and innovate within the automotive electronics industry, driving forward the evolution of automotive electronics amidst a thriving market.”
The inclusion of Sanshin’s established relationships with key automotive manufacturers in Japan, Hong Kong, and Thailand will provide Betamek with immediate access to new markets and opportunities, facilitating smoother entry and fostering stronger, long-term partnerships. Additionally, Sanshin’s expertise in the car audio systems and electronics components complements Betamek’s existing product lines, allowing for a more comprehensive and diversified portfolio to meet the evolving demands of global automotive manufacturers.
As at 5:00 P.M. 28 June 2024, the share price of Betamek Berhad closed 40.5 sen at , representing a market capitalisation of RM182.3 million.
