Singapore’s M1 has confirmed its intent to acquire a stake of “up to 70%” in Malaysia’s Glocomp Systems and two affiliate firms for SG$36 million (US$26.4 million).
The acquisition is aimed at boosting the group’s cloud and digital services offering in the face of growing demand – particularly among enterprises. Glocomp has expertise in analytics, automation, data management, IP communications, privacy and security.
M1 will acquire the stake via its indirectly owned subsidiary AsiaPac Technology, which will take an initial 26% stake in Glocomp for US$6.3 million. M1’s parent Keppel confirmed that this would be “funded via a combination of subscription of new ordinary shares to be issued by Glocomp, and purchase of ordinary shares from Glocomp founders Liew Yoon Kit, Giam Teck Eng, Chan Yue Mun and Chan Tze Ming.”
The aforementioned founders will retain the remaining 30% stake, and stay on at Glocomp in active management positions.
TeleGeography reports that if the acquisition closes, M1 plans to restructure the affiliate firms Global Computing Solutions (GCS) and GCIS as subsidiaries of Glocomp to be led by a unified management team. The deal is expected to close by the end of June 2022, providing it meets agreed conditions.