Broadway

Broadway: Announced that it is entering into a conditional share purchase agreement to acquire a 70% stake in Millennium Arena Sdn Bhd, the holding co of UPECA Technologies and its subsidiaries, for approximately RM50.8m. Acquisition is aimed at expanding Broadway’s capabilities, offering a broader range of products, as well as diversifying its business into Aerospace and Oil & Gas industries with good growth prospects. The Target Group is a Msian group that specializes in the provision of contract precision manufacturing services to high-tech industries such as oil & gas and aerospace. Broadway will be able to leverage on the Target Group’s customer network to develop new business opportunities. The purchase consideration of RM50.8 million is intended to be funded by a mix of internal funds and debt. Grp note that acquisition will allow Broadway and the Target Group to leverage on irs complementary strengths in precision manufacturing to diversify into new markets in Aerospace and Oil & Gas with good growth potential. Add that while HDD business continues to be the core revenue generator for the Grp, this acquisition will create new revenue streams for the Group. The inclusion of the Target Grp into Broadway will add diversity into product portfolio and help to mitigate industry concentration risk.