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Malaysia's MESB ponders buying three apparel brands

17
Feb '12
To strengthen its retail business arm, MESB Bhd, a Malaysia based engineering service provider, is considering acquisition of three promising apparel brands.

Yam Kim Lum, Executive Director of the firm, said the company has earmarked a sum of five million RM from sale proceeds of its telecommunication engineering company - Dynamic Communication Link Sdn Bhd, for expansion of its retail business over the next couple of years.

Speaking on the sidelines of the company's extraordinary general meeting (EGM), Mr. Yam said the acquisition deal for at least one brand is likely to be finalised during current fiscal that ends on March 31.

The new acquisition is projected to contribute 15 percent to the firm's earnings during the next fiscal, he said.

Most of the shareholders at the EGM nodded in favour of selling Dynamic Communication Link to Touch Mindscape Sdn Bhd for a price of RM15 million.

The decision to sale the telecommunication engineering company is in accordance with the firm's present aim of concentrating on retail business.

A major portion of around 65 percent of MESB's last fiscal's turnover of RM70 million came from its retail business.

Mr. Yam informed that the company is ready to receive any new business opportunity and has earmarked five million RM separately for penetrating into new engineering segments.

Commenting on the outlook for the retail sector in Malaysia this year, Mr. Yam said, MESB is warily positive about the sector's performance this year, owing to an expected general election in the country.

He said the rise in wages of civil servants has given a respite to the retail industry as it would enhance domestic consumption

Fibre2fashion News Desk - India


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