Binastra to acquire 51pct stake in LF Lansen for up to RM44.8mil
KUALA LUMPUR: Binastra Corporation Bhd is acquiring a 51 per cent stake in mechanical and electrical solutions provider LF Lansen Sdn Bhd for up to RM44.8 million in cash, to be paid in three stages.
LF Lansen specialises in thermal energy storage (TES) systems for district cooling plants and buffer tanks for data centres, as well as providing engineering, procurement, construction and commissioning (EPCC) services for industrial ventilation, air-conditioning and mechanical ventilation.
In a statement today, Binastra said it will purchase a 40.8 per cent stake for RM15 million cash in the first stage, of which RM12.8 million will go towards subscribing for new LF Lansen shares, while the remaining RM2.2 million will be used to acquire existing shares from the vendor.
"In the second stage, Binastra has been granted a call option to acquire an additional 10.2 per cent equity interest in LF Lansen from the vendor, at a valuation based on eight times the price-to-earnings multiple of its audited profit after tax (PAT) for the financial year ended March 31, 2025 (FY2025), with the exercise price capped at RM8.7 million.
"Upon exercising the call option, Binastra would hold a 51 per cent controlling stake in LF Lansen," it added.
In the third stage, should LF Lansen achieve a PAT of RM10 million for each of the three financial years from FY2025 to FY2027, the vendor will be entitled to an earn-out payment of RM5.9 million per annum, totalling RM17.6 million over the three years.
Binastra said the transaction is expected to be completed in the second half of 2025.
As of end-March 2025, LF Lansen's outstanding order book stood at RM43 million, with several construction contracts currently under negotiation.
Binastra managing director Datuk Jackson Tan Kak Seng said the acquisition will enhance the company's EPCC capabilities and expand its presence in energy-efficient engineering solutions.
"Binastra will gain immediate access to the energy efficiency space, which includes TES systems and buffer tanks.
"The acquisition will also broaden Binastra's exposure to the emerging data centre space in ASEAN countries through the design and supply of buffer tanks," he added.
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