APB EXPANDS INTO EMS AND SEMICONDUCTOR INDUSTRY WITH STRATEGIC GLOBETRONICS INVESTMENT

APB to Become Second Largest Shareholder in Globetronics with RM140 Million Investment

SHAH ALAM, 18 DECEMBER 2023 – APB Resources Berhad ("APB" or the "Group"), a leading fabricator of design engineering equipment, today announced a significant strategic investment in the Electronic Manufacturing Services (EMS) and semiconductor industry. The Group is set to acquire approximately 10.41% of Globetronics Technology Berhad ("Globetronics"), equating to 70.0 million shares, for a total cash consideration of RM140.0 million.

Globetronics, a key player in the EMS and semiconductor sector, is well-positioned within the expanding Electrical and Electronics (E&E) market in Malaysia. According to the IMR report, this market is on an upward trajectory, with projections indicating that E&E exports will reach RM629.10 billion in 2023 and continue to expand at a Compound Annual Growth Rate (CAGR) of 7.9%, potentially hitting RM867.83 billion by 2027. This positive market outlook reinforces APB Group's decision to invest in Globetronics as a strategic and timely move.

Upon the completion of this proposed acquisition, APB will emerge as the second-largest shareholder in Globetronics. APB also intends to appoint a corporate representative to the board of Globetronics, further solidifying the Group’s commitment and partnership.

APB expects to engage in equity accounting for this investment as an associate company, following a review with the Group’s auditors. This approach will allow APB to recognise a share of Globetronics' profits in line with the 10.41% equity interest. Such a strategic financial move is anticipated to boost APB Group's earnings and create an additional stream of income.

The Board of Directors of APB Resources Berhad, commented: "Our investment in Globetronics marks a strategic expansion into a high-growth industry. As the second-largest shareholder, we look forward to contributing significantly to Globetronics’ future direction and success. This acquisition is not just an expansion of our portfolio; it is a leap into a future of enhanced earnings potential and a stronger presence in the tech sector."

As of 18 December 2023,12:30 p.m., the share price of APB stands at RM2.65, representing a market capitalisation of RM299.1 million.