KUALA LUMPUR (Jan 10): Hextar Capital Bhd (formerly known as Opcom Bhd) has completed the acquisition of 49% stake in power industry engineering, procurement, construction and commissioning (EPCC) outfit Transgrid Ventures Sdn Bhd in a cash and share deal.

In a statement on Thursday, the group said the acquisition marks the diversification of the group to include the power generation and transmission business.

HexCap bought the stake from Datin Seri M Saraswathy A/P Manikum.

Transgrid, which has a track record of developing electricity switching stations and substations, posted an unaudited net profit of RM3.87 million in the four months ended April 2023, on revenue of RM40.19 million in the same period.

The acquisition is priced at up to RM98 million, with up to RM49 million and up to 62.94 million HexCap shares representing 14.08% of HexCap’s enlarged share capital.

The final price of the stake purchase is conditional upon the earnings performance of Transgrid in FY2023 to FY2025, the company said.

“The completion of the Transgrid acquisition and diversification is another significant step in HexCap’s transformation. The complementary technical capabilities, customer base and talent of Transgrid will further contribute to the group’s growth,” said HexCap managing director Johnson Chang.

“Hextar Capital is excited to welcome Transgrid as the acquisition and diversification brings together engineering and innovation-centric teams in taking an important step forward in building infrastructure to support the power generation and transmission sector in Malaysia.

“Together, Hextar Capital is well positioned to build a more sustainable business proposition for its shareholders and that will continue with Transgrid for the benefit of stakeholders that both companies serve,” Chang said.

Shares in HexCap closed a sen or 1.68% lower to 58.5 sen, giving it a market capitalisation of RM222.81 million.