BSL Corp Bhd has inked a memorandum of understanding (MoU) to acquire SD Unify Pte Ltd, a Singapore-based company principally involved in the business of manufacturing and repair of semiconductor foundry equipment.
BSLCorp ED Brian Hoo Wai Keong said the proposed acquisition would enable the company to increase its exposure in the semiconductor industry, part of its revitalisation strategy to fast-forward into the sector.
“The semiconductor segment will form a new pillar of growth for BSLCorp and complement its current operations as the group transitions to an electronic manufacturer services company,” Hoo said in a statement today.
The MoU is for a period of three months and both parties are expected to sign a definitive agreement within that period.
The proposed corporate exercise entails a new issuance of up to 30% new shares based on the enlarged share capital base after a share split involving a subdivision of everyone existing ordinary share into two shares.
Finally, BSLCorp would declare a bonus issue of one free warrant for every two shares held after the share split and private placement.
“The share split and issuance of bonus warrants are expected to help improve the liquidity of the current share capital base as well as to reward the existing shareholders who have maintained their investments in BSLCorp.
“The estimated funds to be raised from the private placement is RM30 million, based on the current share price, of which RM24 million will be allocated for the enhancement and expansion exercise,” Hoo said.
BSLCorp noted that the proposed acquisition is expected to dovetail with its last recent announcement on the proposed private placement to enhance and expand the existing semiconductor manufacturing capacity.
SD Unify is a company based in Singapore that operates an International Procurement Office Center, connecting the overseas supply chain for semiconductor original equipment manufacturers approved vendor list components.
The services are complemented by SD Unify’s “One Stop Solution” concept for the manufacturing, sourcing and supplying of electro-mechanical products for semiconductor producers.
BSLCorp is involved in contract manufacturing with exposure in the electrical and electronics, solar farm and renewable energy and to some extent, semiconductor sectors.
“Given the current market demand, the proposed acquisition of SD Unify is timely for BSLCorp to extend its market reach in the semiconductor sector,” Hoo said.
The Semiconductor Industry Association reported total worldwide sales of US$436.8 billion (RM1.81 trillion) in 2020, an increase of 5.8% over 2019.
For the first six months of 2021, worldwide semiconductor sales increased 29.2% over the same period last year, driven by demand for semiconductors in the communications, computer, consumer and automotive segments.