Masteel acquires a 51% stake in Anpec to expand its power infrastructure business

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Masteel acquires 51% of Anpec

Highlights

Masteel will acquire a 51% stake in Anpec for RM12 million through a combination of RM3 million in cash and the issuance of 45 million new shares at 20 sen apiece.
The acquisition gives Masteel access to major utility contracts, including Tenaga Nasional Bhd, while Anpec has an outstanding order book of RM107 million and is bidding for RM63 million in projects.
Masteel shares rose 2.7% to 19 sen on Monday following the announcement, with its market capitalisation now at RM141.9 million and the acquisition expected to be completed by the end of 2026.

This article was translated from the original. Read the original version by our correspondent here.

Acquisition and financing details

As reported by The Edge Malaysia, Masteel has entered into a share sale and purchase agreement with Anpec founder and chief executive officer Abd Rasid Mohamed Salleh to acquire a 51% stake in the high-voltage electrical engineering company for RM12 million. According to a stock exchange filing on Monday, the acquisition of Anpec Global Corporation Sdn Bhd is expected to strengthen the group's engineering capabilities and access to contracts with major utilities, including Tenaga Nasional Bhd and Sabah Electricity Sdn Bhd.

The purchase consideration will be satisfied through RM3 million in cash from internal funds and the issuance of 45 million new Masteel shares at 20 sen apiece, representing a 7.93% premium to the five-day volume-weighted average price of 18.53 sen as at 9 Oct. Following the transaction, Abd Rasid will retain a 49% stake in Anpec and continue overseeing its operations, while becoming a substantial shareholder in Masteel with a 5.7% interest, which will be diluted to 5.49% after the subsequent share placement.

The subsequent share placement will involve up to 29.48 million new shares, or 3.96% of the company's issued share base, to unidentified investors at an indicative price of 19.6 sen per share. The final price will be subject to a maximum 10% discount to the five-day volume-weighted average price before the pricing date, with RM5.53 million of the proceeds allocated to working capital, including utilities, staff costs and administrative expenses, while the balance will cover costs related to the proposal.

Together with the 45 million consideration shares for the Anpec acquisition, the group will issue up to 74.48 million new shares, equivalent to 10% of its existing issued share capital. Masteel previously completed a private placement in August 2025 that raised RM13.82 million, with the proceeds fully utilised for working capital and related expenses.

Impact on Masteel's growth strategy

Anpec specialises in high-voltage electrical infrastructure, substations and industrial electrical systems, and has an outstanding order book of RM107 million from six ongoing projects with completion dates extending to 2028. The company has also entered the data centre-related power infrastructure segment after completing a 275kV bulk electricity supply project for Marmot Data Centre in Elmina West, Selangor, in December 2025.

Anpec is currently bidding for approximately RM63 million worth of jobs involving TNB substations and high-voltage equipment testing services for Sabah Electricity. Masteel executive vice-chairman Datuk Seri Tai Hean Leng said the acquisition enables the group to combine its steel manufacturing operations with Anpec's expertise in power infrastructure engineering.

He said the group is targeting opportunities arising from TNB's RM15 billion investment in national electricity grid infrastructure, as outlined under Budget 2027. According to him, the combination positions Masteel to undertake larger green energy transition projects, including supplying certified green steel alongside 132kV and 275kV substation engineering to connect large-scale solar facilities to the grid.

The acquisition is targeted for completion by the end of 2026. Masteel shares, which manufactures steel billets, high-tensile reinforcing bars and mild steel round bars, rose 0.5 sen or 2.7% to close at 19 sen on Monday, giving the company a market capitalisation of RM141.9 million.

In our previous coverage of the range of financing initiatives and corporate transactions by listed companies in Malaysia, we compiled developments such as rights issues, capacity expansion investments, asset disposals and secondary listings across several sectors. We also highlighted how these measures reflect companies' efforts to strengthen their balance sheets, expand access to capital markets and seek new sources of growth, including in value-added segments such as semiconductors and green energy.

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