HB Global acquires 5G fibre optic company with RM1.1b project value
Published on: Friday, June 11, 2021
By: Bernama
.jpg "HB Global acquires 5G fibre optic company with RM1.1b project value")
Kuala Lumpur: China-based food processing and duck farming company HB Global Ltd has acquired 5G fibre optic cable company, Forward Resources and Construction Sdn Bhd (FRC) with RM1.1 billion project value.In a statement Thursday, the group said the acquisition comes with a profit guarantee of RM20 million for two cumulative financial years. It has also proposed to diversify into the business of construction and engineering solution services.
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Following the acquisition of 60 per cent stake in FRC for RM66 million, the group said FRC is expected to contribute over 25 per cent of the net profit, going forward.
“Based on the secured project and projects-to-be secured, FRC is expected to generate a total revenue of RM555 million in the profit guarantee period.
“All projects under FRC will have a gross profit margin of between 10 per cent and 20 per cent, mainly due to the patented, state-of-the-art Swiss-German technology that FRC possesses,” said the group’s executive director Lee Ping Wei.
FRC is the only company in Malaysia that lays fibre-optic cables using robotic services installed through the national sewerage system.
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Some of the notable clients of FRC are Maxis, Celcom, Digi, Telekom Malaysia, Edotco as well as Time Engineering.
“Sewerage system is the most effective channel to lay telecom cables because every household uses it. And, so far, FRC is the only company in the country that has the capability to do that,” Lee said.
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Given the demand for fibre-optic cable, the business has gained momentum with the government’s push to roll-out commercial 5G services by year-end.Stay up-to-date by following Daily Express’s Telegram channel.
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