KUALA LUMPUR, 22 October – Leading contract manufacturer, Ge-Shen Corporation Berhad (“Ge-Shen”, KLSE: GESHEN (7197)) has received shareholder approval for its strategic diversification into the Electronic Manufacturing Services (EMS) industry and the acquisition of Local Assembly Sdn Bhd (“LA”) in today’s Extraordinary General Meeting (“EGM”). This endorsement marks a significant advancement in Ge-Shen’s initiative to enhance business growth and expand its manufacturing capabilities.
The approved diversification strategy involves incorporating EMS into Ge-Shen’s existing suite of manufacturing solutions, which include plastic injection moulding, precision engineering, and design & prototyping. This addition is expected to transform Ge-Shen into a more versatile manufacturing partner, capable of delivering comprehensive, end-to-end solutions across various industries such as automotive, consumer electronics, and medical devices.
In another strategic move, shareholders approved the acquisition of 40% equity interest in Local Assembly Sdn Bhd, a local EMS player, for RM48 million from the existing shareholders, Chai Voon Sun, Gurmakh Singh A/L Ajmer Singh and Wee Thian Song. This acquisition comes with a guaranteed minimum Profit After Tax (“PAT”) of RM24 million from LA for FYE24 and FYE25.
Dr. Adrian Foong Hong Nian, Chief Executive Officer of Ge-Shen, expressed his gratitude towards the shareholders’ commitment to the company’s long-term vision of becoming a leader in comprehensive manufacturing solutions in Asia.
“Diversifying into EMS will strengthen our core manufacturing business and position us to capitalize on future growth opportunities in this sector. The acquisition of LA will not only diversify our customer base but also allow us to cross-sell our other manufacturing services, positioning us as a one-stop manufacturing service provider in the industry,” he said.
Dr. Foong further added, “With the backing of our shareholders, we are ready to execute this strategy efficiently, focusing on sustainable growth and value creation to meet the evolving demands of our customers and markets.”
At today’s EGM, shareholders also approved a private placement proposal, which involves issuing up to 39,595,000 placement shares, representing no more than 30% of the enlarged issued shares of Ge-Shen.
Ge-Shen closed unchanged at RM 3.65, giving it a market capitalisation of RM 469 million. Year to date, the counter has risen by 215%.