Engineering services provider, MESB Bhd, is looking at the acquisition of three potential apparel brands to strengthen its retail business division.
Executive director Yam Kin Lum said the company had set aside RM5 million from the disposal of its telecommunication engineering company, Dynamic Communication Link Sdn Bhd, to grow its retail business over the next two years.
"We hope complete at least the acquisition of one brand in the current financial year ending March 31," he told reporters after the company's extraordinary general meeting (EGM) here today.
He said the new acquisition is expected to contribute 15 per cent to the company's revenue in the next financial year.
At the EGM, a majority of shareholders approved the selling of Dynamic Communication Link to Touch Mindscape Sdn Bhd for RM15 million.
Yam said the disposal of Dynamic Communication Link was in line with the company's current objective of focusing on the retail business.
The retail business provided strong earnings for MESB's turnover in the last financial year, contributing 65 per cent of the company's RM70 million revenue, he added.
He also said the company is open to any business opportunities and has set aside RM5 million to venture into new engineering segments.
On the outlook for the retail sector, he said MESB is cautiously optimistic over it this year, due to an expected general election.
"The rise in civil servants wages does give some breather to the industry as it is expected to increase domestic consumption," Yam added. -- Bernama
Executive director Yam Kin Lum said the company had set aside RM5 million from the disposal of its telecommunication engineering company, Dynamic Communication Link Sdn Bhd, to grow its retail business over the next two years.
"We hope complete at least the acquisition of one brand in the current financial year ending March 31," he told reporters after the company's extraordinary general meeting (EGM) here today.
He said the new acquisition is expected to contribute 15 per cent to the company's revenue in the next financial year.
At the EGM, a majority of shareholders approved the selling of Dynamic Communication Link to Touch Mindscape Sdn Bhd for RM15 million.
Yam said the disposal of Dynamic Communication Link was in line with the company's current objective of focusing on the retail business.
The retail business provided strong earnings for MESB's turnover in the last financial year, contributing 65 per cent of the company's RM70 million revenue, he added.
He also said the company is open to any business opportunities and has set aside RM5 million to venture into new engineering segments.
On the outlook for the retail sector, he said MESB is cautiously optimistic over it this year, due to an expected general election.
"The rise in civil servants wages does give some breather to the industry as it is expected to increase domestic consumption," Yam added. -- Bernama
