KUALA LUMPUR: Betamek Bhd has entered into a share purchase agreement with Japan's Outsourcing Inc to acquire Sanshin (Malaysia) Sdn Bhd for RM13.4 million.
Sanshin, established as TWD Sanshin (Malaysia) Sdn Bhd in 1985 and later renamed, is renowned for its expertise in manufacturing car audios and other electronics components, serving markets in Malaysia, Japan, Hong Kong and Thailand.
The acquisition will position Sanshin as a wholly-owned subsidiary of Betamek, significantly broadening Betamek's customer base and further cementing its market presence.
The acquisition was valued at a price-to-earnings multiple of 10.0 times, based on the audited net profit of RM1.3 million for Sanshin, reflecting both the strategic value and the financial health of the acquired entity.
Betamek executive director Muhammad Fauzi Abd Ghani said by integrating Sanshin's expertise and market presence with Betamek's own, both parties are setting a new benchmark for excellence and driving forward the evolution of automotive electronics amidst a thriving market, as evidenced by Malaysia's total industry volume (TIV).
"With the TIV reaching 799,731 units in 2023 and a resilient forecast of 740,000 units for 2024 despite global economic challenges, the potential for growth and innovation in automotive electronics has never been more exciting.
"We are enthusiastic about the synergies this milestone will unlock for both companies, and we are committed to leveraging these new opportunities to deliver enhanced value to our customers and stakeholders, further solidifying our position in a robust automotive market," he said in a statement.
Betamek noted it is set wo widen its horizon with offerings to a broader clientele supported by Sanshin's diverse product range and established markets in Japan, Hong Kong, Thailand, and beyond.
It added that partnership is poised to elevate Betamek's offerings in innovative electronics and technology solutions, catering to the evolving needs of the electric vehicle and automotive sectors across Malaysia and Southeast Asia.