Hextar Capital buys 9.8% stake in Binacom to boost telco presence

PETALING JAYA: Hextar Capital Bhd’s wholly-owned subsidiary Opcom VC Sdn Bhd (OVCSB) has acquired a 9.8% stake in ACE Market-listed Binasat Communications Bhd (Binacom) through a series of share purchases.

Binacom is principally involved in support services for satellite, mobile and fibre optic networks, utility infrastructure construction and the engineering, procurement, construction and commissioning of solar facilities, mainly in Malaysia.

In a filing with Bursa Malaysia, Hextar stated OVCSB bought 40 million Binacom shares or a 6.62% stake from Cosmopolitan Avenue Sdn Bhd on June 18 for RM8.4mil or 21 sen per share.

OVCSB signed three additional conditional share sale agreements with Cosmopolitan Avenue, Por Teong Eng and Lim Yao Ying to acquire a further 19.25 million shares or a 3.19% stake in Binacom for RM4.04mil at 21 sen per share.

“Upon completion of the second acquisition, OVCSB’s equity interest in Binacom will rise from 22.54% to 25.73%,” said Hextar.

The share price is at a 75% premium to Binacom’s five-day volume weighted average price of 12 sen per share. The acquisitions will be funded via a mix of internal funds and bank borrowings.

Hextar added the investments will allow OVCSB to strengthen its position in the telecommunications sector by leveraging Binacom’s expertise in satellite, mobile and fibre optic networks, utility infrastructure construction and solar facility projects.

“The investment in Binacom will have an accretive effect on the earnings of Hextar moving forward,” it added, noting Binacom will also serve as a platform to accelerate expansion and enhance the group’s competitiveness in future contract tenders. Hextar expects the stake acquisition from Cosmopolitan and two other sellers to be completed in the fourth quarter of 2025.