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New Straits Times
24-04-2025
- Business
- New Straits Times
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.
Malaysian Reserve
24-04-2025
- Business
- Malaysian Reserve
Binastra to acquire majority stake in TES specialist LF Lansen for up to RM45m
BINASTRA Corporation Bhd has entered into conditional agreements to acquire up to 51% equity interest in LF Lansen Sdn Bhd, a regional player in Thermal Energy Storage (TES) systems and engineering, procurement, construction and commissioning (EPCC) services, for a maximum consideration of RM44.8 million. The acquisition will be executed in three stages, beginning with an initial purchase of 40.8% equity interest for RM15 million, comprising RM12.8 million for new shares and RM2.2 million via a share purchase from the vendor. The group has also been granted a call option to acquire a further 10.2% stake for up to RM8.7 million, exercisable after the finalisation of LF Lansen's FY2025 audited financials. To align long-term interests, the deal includes a performance-based earn-out mechanism. If LF Lansen achieves a profit after tax (PAT) of RM10 million annually from FY2025 to FY2027, the vendor is entitled to RM5.9 million per year in additional payments. The total earn-out could reach RM21.2 million, depending on profit performance, bringing the full acquisition price to the agreed cap of RM44.8 million. Founded over 20 years ago, LF Lansen is a CIDB G7-certified contractor with operations in Malaysia, Singapore, Vietnam and the Philippines. It specialises in TES systems for district cooling plants, buffer tanks for data centres, and industrial HVAC solutions. As of end-March 2025, the company's outstanding order book stood at RM43 million, supported by an unaudited 9MFY2025 PBT of RM7.1 million, indicating strong earnings growth from FY2024's RM2.1 million PAT. Binastra MD, Datuk Jackson Tan Kak Seng, said the acquisition marks a strategic move to expand into energy-efficient engineering and data centre infrastructure. 'We see potential in LF Lansen, given its strong track record and established reputation both in Malaysia and across the region. The acquisition will enable Binastra to enhance its EPCC capabilities and expand its business into the provision of energy efficient engineering solutions,' he said. He added that the deal gives Binastra immediate access to the growing data centre segment in ASEAN, especially through LF Lansen's TES and buffer tank expertise, while also supporting Malaysia's broader energy efficiency agenda. 'By embedding these capabilities into our offering, we will also enhance Binastra's ESG profile, which is increasingly viewed as a priority for institutional investors,' Tan said. The acquisition will be fully funded via internal funds, with Binastra holding RM62.6 million in cash and bank balances as of March 25, 2025. The transaction is expected to be completed in the second half of 2025. –TMR
