KUALA LUMPUR (Dec 13): Ekuiti Nasional Bhd (Ekuinas) has acquired 100% stake in lighting design consultancy and manufacturer Davex (M) Sdn Bhd for RM255 million, marking its largest-ever investment in the manufacturing sector.

Penang-based Davex is involved in the luminaire segment of the lighting market, and sells its own product under brand name Davis Lighting, said Ekuinas in a statement today.

"The team carefully designs the luminaire and integrates the light source with the control gear to form a complete light fixture compliant to specifications required by the end customers," said Ekuinas.

Davex's customers comprise commercial, industrial and residential clients in Malaysia, Singapore and Australia. Past projects involving the 34-year-old company include KLCC, Sunway Medical Centre and Singapore's Changi Airport and Public Housing programme, to name a few.

"Ekuinas is pleased to enter the luminaires segment with Davex, a strong, homegrown regional market leader that has illuminated notable projects across the region, including our very own Petronas Twin Towers," said Ekuinas chairman Raja Tan Sri Arshad Raja Tun Uda.

"The investment marks our entry into the manufacturing sector, which is timely as demand for luminaires, especially energy efficient models, is rapidly increasing," he added.

Ekuinas said the region's economic growth track will spur demand from property and infrastructure developers, combined with the Malaysian luminaire market which is expected to grow to US$882 million by 2020.

"Additionally, innovation in energy efficiency will push developers to adopt energy efficient lighting solutions for regional major developments, which are projected to drive demand for light fittings.

"As the industry experiences a shift from conventional to energy-efficient LED lighting, Davex is well-placed to capitalise on the increasing demand for energy efficient lighting solutions," said Ekuinas.

Ekuinas chief executive officer Syed Yasir Arafat Syed Abd Kadir said: "We will work closely with Davex's management team to establish and accelerate local and regional growth to replicate the company's success in Singapore and Australia, and look to expand its facility in Penang."

"We are confident that as the company grows, there will also be increased employment opportunities for all Malaysians," he added.

Meanwhile, Davex Group managing director Yap Chung San described the acquisition as a "defining" milestone for the company.

"We look forward to working with Ekuinas to take Davex to the next phase. With their expertise and track record of growing companies in Malaysia, we are confident Davex is in good hands," said Yap.

Since its inception in 2009, Ekuinas — with a government endowment of RM5 billion — has made 54 direct and outsourced investments, with a total committed capital of over RM3 billion.