Ge-Shen Corporation Berhad has announced strategic proposals to enhance its position in the electronic manufacturing services sector. Key among these is a proposed acquisition of an additional 40% equity interest in Local Assembly Sdn. Bhd. for RM52 million, which will increase Ge-Shen’s ownership to 80%. Local Assembly has reported strong financial performance, with a profit after tax of RM8.59 million for the nine-month period ending 30 September 2025, exceeding its full-year profit for 2024.
To support its expansion, Ge-Shen plans two private placements. The first involves issuing up to 41.40 million new shares to raise approximately RM60.02 million for working capital and debt repayment. The second placement will involve up to 30.16 million new shares to generate about RM43.73 million, which will partially fund the acquisition and cover working capital expenses.
Dr. Adrian Foong Hong Nian, Chief Executive Officer cum Executive Director of Ge-Shen said, “This acquisition marks a significant milestone in our transformation journey. Local Assembly has demonstrated strong capabilities in connector assembly, plastic injection moulding, and sub-contract assembly for electrical appliances. By increasing our stake, we are consolidating earnings and enhancing our ability to drive strategic direction and operational execution. The private placements will provide us with the financial flexibility to support expansion, optimise our capital structure, and pursue new opportunities in high-growth sectors such as Artificial Intelligence (“AI”), data centres, and industrial electronics.”
The acquisition is expected to enhance the Group’s future earnings and aligns with Ge-Shen’s goal of becoming a globally recognized engineering and manufacturing solutions provider. Local Assembly has shown consistent profitability and is set to benefit from the increasing demand for high-speed data transmission and AI infrastructure. Recent acquisitions have bolstered the Group’s engineering services and innovation capabilities.
Ge-Shen is focusing on business development and new product introductions in various markets, including medical, industrial, consumer electronics, AI, and data centers. The Group is expanding its production capacity through factory expansions in Kedah, Penang, and Vietnam, aimed at managing larger volumes and new product specifications. These developments are anticipated to conclude by the first quarter of 2026, pending regulatory and shareholder approvals.