MIKRO MSC Bhd plans to acquire Singapore-based TES Productions & Projects Pte Ltd (TES) for RM30 million in shares, aiming to diversify into the business of design, manufacture, and installation of signs and advertising displays.

On 12 August 2024, Mikro entered into a heads of agreement with Calida Group Pte Ltd for the acquisition, which will be fulfilled through the issuance of 134.83 million new shares at 22.25 sen each.

The acquisition is expected to broaden Mikro’s revenue streams and reduce its reliance on its existing markets by integrating into a new segment with significant growth potential.

Once completed, TES will become a wholly-owned subsidiary of Mikro, contributing positively to the company’s earnings and net assets starting from the financial year ending December 31, 2024.

The company anticipates that the move will enhance its market presence in Singapore and align with its strategic growth objectives.

Mikro MSC Bhd’s share price increased by 2.5 sen or 9.26% at 29.5 sen today, reflecting a market capitalisation of RM317 million. — TMR