Opcom proposes to diversify into telecommunication network business

KUALA LUMPUR (Sept 19): Fibre optic cable manufacturer Opcom Holdings Bhd has proposed to diversify its business to include the provision of telecommunication network infrastructure solutions.

The group said it is buying the entire equity interest in T&J Engineering Sdn Bhd (TJE) from T&J Assets Holdings Sdn Bhd at a price of up to RM90 million, to be paid via a combination of cash (30%) and new shares (70%).

TJE provides telecommunications network infrastructure solutions, encompassing civil, as well as mechanical and electrical engineering telecommunication infrastructure deployment.

The firm has been sub-awarded contracts for the implementation of Jalinan Digital Negara (Jendela) Phase 1 project in multiple locations across Sarawak, added Opcom in a filing with Bursa Malaysia.

The group expects the telecommunication network business to contribute 25% or more of Opcom’s net profits.

Opcom executive director Ong Soon Lim said the acquisition will enable the group to offer more comprehensive solutions for the telecommunications industry, ranging from fibre optic cables to telecommunication network infrastructure solutions.

“Further, the proposed acquisition and diversification will provide Opcom with an opportunity to enlarge its footprint in East Malaysia,” he said in a statement.