KUALA LUMPUR (April 13): Serba Dinamik Holdings Bhd (SDHB) has acquired 24.84% of Singapore-listed CSE Global Ltd for S$57.67 million (RM170.57 million).

In a filing today, the group said its wholly-owned subsidiary Serba Dinamik International Ltd had entered into eight conditional share sale and purchase agreements with shareholders of CSE Global for the proposed acquisition of up to 128.17 million ordinary shares of the company.

The eight shareholders are Tan Mok Koon, CAM-GTF Ltd, FIL Investment Management Ltd, Raffles-Asia Investment Company, George Lee Private Ltd, CAM GTi Ltd, Lee Chuan Su lan and Irene Lee.

Founded by Tan Mok Koon, CSE Global is a integrated industrial automation, telecommunications and environmental solutions company with projects in the Americas, Asia Pacific, Europe, Middle East and Africa.

Upon completion of the proposed acquisition, SDHB said it hopes to leverage on CSE Global’s client base in the oil and gas industry where the former might be able to extend engineering, procurement, construction and commissioning services, as well as operations and maintenance services.

In a statement, SDHB group chief executive officer, Datuk Mohd Abdul Karim Abdullah, said the proposed acquisition is in line with the group’s overall strategy to enlarge its geographical footprint into countries where CSE Global has a presence, but which SDHB does not.

These include the Mexico, Australia, New Zealand, and the USA, the last contributing 56.9% of CSE Global’s total revenue.

He said the proposed acquisition will allow the group to gain a stake in a profitable target with its own financial capabilities and ready order books without having to inject further capital.

As at December 31, 2017, CSE Global had cash balances and short-term investments of approximately S$46.91 million, it said.

SDHB closed 21 sen or 6.36% higher to RM3.51, for a market capitalisation of RM5.15 billion. Some 4.88 million shares were traded.