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
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