Accrelist to Leverage on Growing Demand for HDD Solutions with Acquisition of Shares in MClean Technologies
SINGAPORE, June 26, 2024 - (ACN Newswire) - Datuk Dr. Terence Tea Yeok Kian, Executive Chairman and Managing Director of Accrelist Ltd. ("Accrelist"), is pleased to announce that a subsidiary of Accrelist, one of the largest aesthetic groups listed on the Catalist Board of Singapore Exchange (“SGX”), has entered into a sale and purchase agreement to acquire a 28.53% equity stake in MClean Technologies Berhad (“MClean Technologies”, “MClean” or the “Company”). The acquisition is conditional upon the satisfaction (or, where applicable, waiver) of certain conditions precedent.
Datuk Dr. Terence Tea Yeok Kian, the Executive Chairman and Managing Director of Accrelist
This share acquisition underscores Accrelist's confidence in MClean's business direction and growth prospects, especially in the growing demand for Hard Disk Drive (“HDD”) solutions, following the significant increase in demand for data centres.
MClean Technologies, headquartered in Singapore, has established itself as a pivotal player in the electronics and semiconductor products cleaning solutions industry. The Company offers a comprehensive range of services, including surface treatment, precision cleaning, sterile, and packaging services for various industries such as HDD, consumer electronics, and oil & gas. MClean Technologies operates in Malaysia, Singapore, and Thailand, providing high-quality and reliable services to its diverse clientele.
Furthermore, MClean's strong presence in the HDD solutions industry positions it well to capitalise on the growing demand for data centres. Malaysia is seeing significant data centre investments, with Johor emerging as the largest data centre market in the country. Johor is poised to attract RM17.0 billion (US$3.6 billion) in new data centre investments in 2024 alone, according to the news report by New Straits Times, driven by multinational corporations taking advantage of its strategic location and lower operating costs. Major players like Nvidia, AirTrunk, and Microsoft are establishing data centres in the region, further boosting the demand for HDD solutions.
Datuk Dr. Terence Tea Yeok Kian (“Datuk Dr. Terence Tea”), the Executive Chairman and Managing Director of Accrelist, is a distinguished businessman with extensive experience and a proven track record of driving growth and innovation. He holds a Ph.D. in Business Administration (Honorary) from Honolulu University and a Diploma in Electronics and Electrical Engineering from Singapore Polytechnic. Datuk Dr. Terence Tea currently holds several prominent directorships in listed companies, including Executive Chairman and CEO of Jubilee Industries Holdings Ltd. (“Jubilee”) and was previously the Chairman of a publicly listed electronics manufacturing services company in Malaysia.
Executive Chairman and Managing Director of Accrelist, Datuk Dr. Terence Tea commented, "We are excited about Accrelist's acquisition of shares in MClean Technologies and we look forward to contributing to the Company's growth and success. The Company has a strong foundation and a dedicated team, and I am confident that together, we can achieve significant milestones and create long-term value for both our shareholders. In particular, we see great potential in expanding into HDD solutions, especially in Malaysia and Thailand, where demand for high-quality precision cleaning services is rapidly growing."
Following the acquisition of the equity stake in MClean Technologies, there is expected to be synergies between Jubilee, the subsidiary of Accrelist, and MClean Technologies, allowing both companies to leverage on their respective strengths to create cross-selling opportunities and enhance the customer base of both entities. This potential collaboration is expected to drive growth and provide comprehensive solutions to a broader market, further solidifying Jubilee’s presence in the electronics and semiconductor sectors, especially in the storage space sector.
As at 5:00 P.M., 24 June 2024, being the last trading day prior to signing of the sale and purchase agreement, the share price of MClean Technologies closed at RM0.41 representing a market capitalisation of RM80.9 million.
