Cosmos Technology proposes RM16.52 million all-share deal for Orisystems stake
The proposed 51% acquisition would give Cosmos entry into electronic manufacturing services, subject to due diligence and approvals.
Cosmos Technology International Bhd has outlined plans to buy 51% of Orisystems Opto Sdn Bhd, an electronic manufacturing services (EMS) company, for an indicative RM16.52 million through a share issue.
In a bourse filing, Cosmos said it had signed a non-binding letter of intent with Akil Ahmad Ishaq and Othman Ali, both directors and substantial shareholders of Orisystems. The proposed purchase covers 510,000 Orisystems shares.
Payment would comprise 33.05 million new Cosmos shares priced at 50 sen each. That issue price carries a 27.71% premium, or 10.85 sen, to the five-day volume weighted average market price of Cosmos shares, which stood at 39.15 sen as of Oct 16.
Cosmos said Orisystems had guaranteed annual profit after tax of at least RM3.6 million for FY2027 to FY2029, with the financial years ending Dec 31. The aggregate guarantee is RM10.8 million. Based on its 51% share of the annual guaranteed profit, Cosmos put the indicative acquisition valuation at nine times earnings.
Orisystems, incorporated in 1992, makes electronic components and parts for general and aerospace uses, alongside trading and product packaging activities. Cosmos said buying into the existing operation would allow it to enter EMS without building the required capabilities from scratch.
Conditions include due diligence, business diversification, board and shareholder approvals, and Bursa Malaysia’s approval for the shares used as consideration. The parties expect to sign a definitive agreement within six months, unless they mutually agree to extend that period.
