Cape EMS partners Pro3C for Johor expansion, proposes RM50 million RCPS issue
Pro3C plans to increase its Senai facility’s surface-mount technology production lines from eight to 18 by 2027.
Cape EMS Bhd has agreed to support the expansion of Pro3C (Malaysia) Sdn Bhd’s optical transceiver manufacturing operations in Johor, alongside a proposed RM50 million subscription by Pro3C for preference shares in Cape EMS.
In a filing, Cape EMS said it had signed a memorandum of agreement with Pro3C, a subsidiary of Taiwan-listed FIC Global Inc. Cape EMS will provide manufacturing, supply chain, facilities and operational support for Pro3C’s planned expansion in Senai.
Pro3C currently operates eight surface-mount technology (SMT) lines at its Johor facility and intends to raise that number to 18 by 2027. Optical transceivers change electrical data signals into light pulses for transmission through fibre optics and reverse that process, while SMT enables modules to be attached directly to printed circuit boards.
Under the proposed financing, Pro3C will subscribe for redeemable convertible preference shares (RCPS), comprising 50 million RCPS priced at RM1 each. Cape EMS has earmarked RM25 million for equipment, RM12 million for production facilities and renovation, and RM12.73 million for operating expenditure.
The RCPS will have a five-year tenure, with conversion prices ranging from 30 sen to 65 sen. Conversion could result in up to 166.67 million Cape EMS shares, equivalent to 14.38% of its enlarged issued share capital.
