Derek Goh, chairman & CEO of Serial System.
File photo.SERIAL SYSTEM – a leading distributor of electronic components – via its wholly-owned subsidiary, SCE Enterprise, has taken a 4.5% stake in Global Invacom for S$3.48 million.
Global Invacom is a leading satellite communications equipment provider listed on the SGX mainboard along with Serial System.
On Friday (June 19), Serial acquired 12 m Global Invacom treasury shares (which are shares bought back by Global Invacom from the open market) at S$0.29 each.
(See past story: GLOBAL INVACOM: Strong share buyback last week)
This is close to the lowest point in the latter's 52-week trading range of 28 -- 55 cents. (Serial's shares, in sharp contrast, are trading close to the highest point of their 52-week range).
Global Invacom stock, at 31 cents recently, went for a trailing PE ratio of 11.5 and a 1.69% dividend yield.
|
Serial has a view not only to ride on Global Invacom's business growth but also to turn the latter into a customer.
“Global Invacom has grown organically and via acquisitions to become a world leader in sat comms equipment, with a manufacturing footprint in Europe, Asia and, very shortly, in the United States. Beyond the investment opportunity, we will explore how we can support Global Invacom in sourcing and supplying components,’” said Dr. Derek Goh, Executive Chairman and CEO of Serial System.
Serial System recorded over US$1.0 billion in sales in FY2014.
Global Invacom chairman Tony TaylorGlobal Invacom, which is also listed on the U.K. AIM Market, announced on 2 June 2015 that it intends to acquire Skyware Global, a leading U.S. manufacturer of Very Small Aperture Terminals for the sat comms industry, for up to US$11.6 million in cash and shares.
Global Invacom Executive Chairman, Mr Tony Taylor, said, “We welcome the investment by Serial System which underscores the confidence in our strategy to position ourselves as a leader in global Sat Comms equipment. Serial System has a proven track record in supplying electronic components and as an investor they can help us improve our own procurement of components in tandem with our growth strategy.”
