PETALING JAYA: BSL Corp Bhd (BSLCorp), which hit limit-up twice (Sept 6 & 13) in these two weeks after its memorandum of understanding (MoU) announcement to buy Singaporean semiconductor firm SD Unify Pte Ltd, is looking at potentially being reclassified into the technology-semiconductor sector.
BSL is currently classified under the industrial products & services sector on Bursa Malaysia Securities Bhd.
SD Unify is principally involved in the business of manufacturing and repairing of semiconductor foundry equipment. It is also an International Procurement Office center for oversea supply chain for Semiconductors OEM Approved Vendor List components. The customer base of SD Unify includes many big players in the semiconuctor industry for around a decade. BSLCorp would have the privilege to sell its products and services to these big boys following this acquisition.
“Currently, BSLCorp has an existing foothold in semiconductor sector. This acquisition of SD Unify would increase its exposure to this lucrative sector due to shortage of this product worldwide and the booming electric vehicle segment. This corporate manoeuvre will cause BSLCorp to be reclassified to semiconductor or technology sector soon,” BSLCorp said in a statement today.
On Monday, BSLCorp was queried by Bursa Securities over the recent unusual market activity in the company’s shares, of which the precision metal parts and components maker alluded to the SD Unify deal. On Wednesday, BSLCorp was up 2.03% or 4 sen to RM2.01 on 3.25 million shares traded.
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. BSLCorp had proposed to undertake share split involving a subdivision of every 1 existing share in BSLCorp into two shares and bonus issue of up to 127.4 million free warrants in BSLCorp on the basis of one warrant for every two shares.
“Currently, BSLCorp’s orders are high due to high volume of backlogs from their customers and BSLCorp has been able to record consecutive profit after taxes for the past four quarters up to May 31, 2021.”
In order to tap into a wider market segment and to achieve better financial performance, BSLCorp is in continuous discussions with potential customers within the electrical & electronic and semiconductor industries for, amongst others, the manufacturing of parts for semiconductor test equipment which are expected to yield higher profitability to BSLCorp. Such new product range is of greater complexity and specifications and hence, requires more technologically advanced equipment and machineries.