Serba Dinamik to buy 24.8% in CSE Global

By BERNAMA / Graphic By TMR

Serba Dinamik Holdings Bhd (SDHB) has proposed to acquire a 24.84% stake in Singapore- listed systems integrator CSE Global Ltd for S$57.67 million (RM170.54 million).

Its wholly owned subsidiary, Serba Dinamik International Ltd, last Friday inked eight separate conditional share sale and purchase agreements with CSE Global shareholders.

In a filing to Bursa Malaysia, SDHB said the acquisition was part of the group’s overall strategy to expand its geographical footprint in areas where the CSE Global group had presence.

This includes countries where the SDHB group has no presence, namely the US, Mexico, Australia and New Zealand.

The Singapore-based group, which provides industrial automation, telecommunications and environmental solutions, operates a network of 41 offices in 17 countries.

“On completion of the proposed acquisition, the SDHB group seeks to leverage on CSE Global group’s client base in the oil and gas industry,” SDHB said, adding that it might be able to provide its engineering, procurement, construction and commissioning services, as well as operations and maintenance services, to them.

The SDHB group also expects to strengthen its information technology (IT) segment by potentially integrating with CSE Global’s various IT solution platforms.

“The board is of the view that, barring any unforeseen circumstances, the prospects and future financial performance of the CSE Global group are expected to be favourable given the positive prospects of its existing and new flow orders.

“Further, with the anticipated revenue synergies between the SDHB group and the CSE Global group, the board expects that the performance of the CSE Global group will continue to be positive in the long run,” it said.

For the financial year ended Dec 31, 2017, CSE Global recorded a consolidated revenue of S$362.35 million and a consolidated loss after tax and non-controlling interests of S$45.15 million. — Bernama