BSLCORP (7221) BSL CORP BHD eyes transfer to technology sector
KUALA LUMPUR: BSL Corporation Bhd (BSLCorp), which recently announced a proposed corporate exercise aimed at increasing its exposure in the semiconductor industry, expects to have its sector reclassified to Technology - Semiconductors soon.
The precision metal part and printed circuit board maker is currently placed in Bursa Malaysia’s Industrial Products and Services sector.
In a statement, BSLCorp said it would boost its exposure in the semiconductor sector via the proposed acquisition of a "controlling interest” in Singapore-based SD Unify Pte Ltd, which makes and repairs semiconductor foundry equipment.
SD Unify also operates an international procurement office centre connecting the overseas supply chain for semiconductor original equipment manufacturers’ approved vendor list components.
BSLCorp described the semiconductor sector as "lucrative” due to the global chip shortage and the booming electric vehicle segment.
To recap, the company announced on Sept 6 that it had inked a three-month MoU to negotiate the purchase of an unspecified equity interest in SD Unify for a consideration sum to be agreed on later.
BSLCorp said the exercise would enable it to market its products and services to the big semiconductor players that are part of SD Unify’s customer base.
It plans to increase the production capacity of its existing semiconductor division via a private placement.
In the statement, BSLCorp noted that following the Sept 6 announcement, its shares surged 30 per cent in a single day (limit-up) twice -- on Sept 6 and 13.
On Sept 13, Bursa Malaysia Securities Bhd issued an unusual market activity query on the sharp rise in the company’s share price and volume.
In reply, BSLCorp said the only corporate developments relating to its business had been announced and that it was still negotiating the terms of the definitive agreement with the vendors of the SD Unify shares.
Yesterday (Sept 15), the counter gained four sen to RM2.01, with 3.25 million shares changing hands.
BSLCorp said the acquisition of SD Unify would be financed by BSLCorp’s internal cash and partly from the private placement of up to 58.8 million new BSLCorp shares, which was announced on Bursa’s website on Sept 3, 2021.
"In the same announcement, BSLCorp proposed to undertake a share split involving a subdivision of every one existing ordinary share in BSLCorp into two shares and a bonus issue of up to 127.4 million free warrants in BSLCorp on the basis of one warrant for every two shares,” it added. - Bernama
https://www.thestar.com.my/business/business-news/2021/09/16/bsl-corp-eyes-transfer-to-technology-sector
