KUALA LUMPUR: HI Mobility Bhd has signed two conditional share sale agreements to buy Handal BCM Sdn Bhd and Acacia Motor Services Sdn Bhd for RM82.53 million.
The acquisition for Handal BCM is valued at RM52.9 million while Acacia amounted to RM29.63 million.
The acquisitions will be paid through the issue of 22.04 million and 12.34 million new shares in HI Mobility at RM2.40 per share, on a willing-buyer, willing-seller basis.
The acquisitions position HI Mobility as an integrated player across the entire value chain – with assembly, production, distribution, sales, maintenance and repair works now complementing its core operational competencies in the mass transit sector.
“These acquisitions mark our evolution from a service operator to a more integrated commercial vehicle industry player,”
said HI Mobility executive director and chief executive officer Lim Chern Chuen.
“Through the integration of Handal BCM and Acacia, we aim to strengthen our core bus operations through the realisation of meaningful synergies, improve efficiency and establish a more integrated and streamlined transportation value chain which positions us for sustainable long-term growth.”
He added that there are promising opportunities to expand the company’s presence within the electric vehicle (EV) sector.
A total of RM1.9 billion was allocated to a government-owned public transport company to buy 1,660 buses, of which 1,350 are electric buses.
HI Mobility maintains cautious optimism that the consolidation of Handal BCM and Acacia will deliver synergistic advantages.
This will enable it to achieve economies of scale across procurement, logistics and production, alongside the reduction of overheads realised by streamlining overlapping functions.
“This overall financial impact is expected to be earnings accretive to us and enhance shareholder value,” he added.
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