Cabnet buys engineering firm for RM16m

TheEdge Wed, May 12, 2021 10:18pm - 2 years View Original


KUALA LUMPUR (May 12): Building management solution provider Cabnet Holdings Bhd is acquiring engineering services firm CEE M&E Engineering Sdn Bhd (CMESB) for RM16.29 million in cash.

“The proposed acquisition would provide Cabnet group with the opportunity to extend its existing suite of electrical engineering services and venture into mechanical engineering services to include services which are currently provided by CMESB.

“The enlarged Cabnet Group would be able to extend its business activities to include electrical engineering services from medium and low voltage to extra-low voltage as well as mechanical engineering services,” the group said in a filing with Bursa Malaysia.

Cabnet said it is buying CMESB from Murugesu Vindasamy, Tan Tian Yee and Kong Tze Senn.  

The deal, it said, comes with a two-year profit guarantee of RM4 million for the financial years ending Aug 31, 2021 and 2022.

As at April 30, CMESB’s secured contracts amounted to RM78.28 million, of which the unbilled amount to be recognised as revenue is RM37.01 million. The contracts are expected to provide earnings visibility up to FY22, CabNet said.

The share price of Cabnet closed unchanged at 26 sen, bringing the group a market capitalisation of RM46 million. The counter saw 75,000 shares traded.

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