KUALA LUMPUR – Malaysian contract manufacturer Ge-Shen will purchase a 40% stake in EMS firm Local Assembly to expand its presence in electronics manufacturing.

The RM48 million ($10.2 million) transaction will be partially funded via proceeds from a private placement exercise, Ge-Shen said in an exchange filing.

"The board believes the acquisition will complement the existing business, enabling cross-marketing of products with diverse designs and specifications to a broader clientele. This will also drive synergistic value across the company through shared technology know-how," Ge-Shen said.

Local Assembly is primarily a manufacturer of electronic, electrical, and plastic injection molded components, and a sub-contract assembler of electrical appliances and equipment.

The transaction is expected to be completed by the second half of 2024, subject to requisite approvals and barring unforeseen circumstances, Ge-Shen said.