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ACO Group Bhd
108 & 110
Jalan Seroja 39, Taman Johor Jaya
Phone: +60 73619399p:+60 73619399 JOHOR BAHRU, 81100  Malaysia Ticker: ACOACO

ACO to leverage Focus Electrical’s presence in east coast


KUALA LUMPUR: ACO Group Bhd will accelerate its plans to expand its footprint in the east coast, leveraging the company’s 49 per cent acquisition of Focus Electrical Malaysia Sdn Bhd for RM7.35 million which was completed on Nov 30.

Group managing director Tan Pee Tee said ACO’s investment in Focus Electrical was a strategic call and enhanced its market reach as it expedited expansion plans into new states.

“Focus Electrical has a strong presence in the east coast, thus enabling us to leverage the additional sales outlets and distribution centre to enlarge our customer base without needing to set up new facilities.

“It also serves Selangor, Kuala Lumpur, Terengganu, Kelantan and Pahang.

“This is in line with our expansion plans and complements ACO’s presence in the southern and central region.” ACO, through its subsidiaries, is involved in the distribution of electrical products, specialising in cables, wires and accessories, electrical distribution, protection and control devices, as well as electrical appliances.

On top of increased geographical coverage, Tan said the enlarged ACO could collectively negotiate for better incentives, rebates, payment discounts and payment period terms through bulk purchases.

These could lead to cost savings and increased competitiveness via lower selling prices, said Tan.

“The acquisition of Focus Electrical is supported by a profit guarantee amounting to RM4 million and RM6 million for its financial year ended/ending April 30 this year and next year, respectively.” Tan said ACO and the shareholders of Focus Electrical collectively injected new capital amounting to RM13 million by way of subscribing for new ordinary shares in the firm to increase the number of sales outlets in the east coast region.

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