MALAYSIA; SINGAPORE —Singapore-listed engineering management firm Asiatic Group (Holdings) Limited has signed a definitive sale and purchase agreement to acquire a 100% equity stake in Malaysian automotive dealership Karrus Mobility Sdn Bhd for S$2 million. The transaction follows shareholder approval obtained in July 2026 for a strategic diversification beyond the group’s core fire protection operations in Singapore. The acquisition remains subject to customary closing conditions, including due diligence, brand principal approval, and shareholder consent at an upcoming extraordinary general meeting.
Through the acquisition of Karrus Mobility, Asiatic Group enters the electric vehicle retail, after-sales service, and spare parts distribution segment in Malaysia under Chinese automaker Chery Group’s iCaur brand. Karrus Mobility currently operates an iCaur showroom in Petaling Jaya, Selangor, and generated an unaudited net profit of RM334,000 during the second quarter of 2026. Under the terms of the agreement, the vendor, Karrus Automotive Sdn Bhd, must open a second showroom in the Klang Valley within six months of completion or forfeit S$600,000 of the purchase price. The deal also incorporates a two-year profit guarantee of at least RM3.17 million in cumulative profit after tax through December 2028, backed by a S$1 million consideration deferred retention pool and full indemnity against potential net losses.
To support the acquisition and optimize capital structure, Asiatic Group plans to raise S$2.25 million via a private placement of new equity at 0.18 Singapore cents per share to three investors. Net proceeds will fund S$1 million of the acquisition cost, while S$1.1 million will be deployed toward debt reduction. The company reported S$13.34 million in total loans as of June 30, 2026, including S$11.76 million due to United Overseas Bank by year-end 2026. Concurrently, Asiatic Group is divesting its 49% stake in Cambodian power joint venture Colben Energy (Cambodia) PPSEZ Limited for US$3.1 million, which will conclude pending arbitration proceedings upon closing.
Established in 1962 and listed on the SGX Catalist board since 2003, Asiatic Group (Holdings) Limited specializes in engineering management, providing fire protection design, installation, and maintenance, alongside manufacturing firefighting hardware under its KILLFIRE brand. Karrus Mobility Sdn Bhd, established in August 2025, operates auto retail assets in Malaysia dedicated to electric vehicles.
The strategic shift allows Asiatic Group to capture growth in Malaysia’s expanding automotive sector, where total industry sales reached 820,752 units last year. While sales volumes are expected to normalize slightly to 790,000 units in 2026, electric vehicle adoption in the country continues to benefit from extended government tax and excise exemptions for locally assembled units through December 2027. The transaction reflects a growing trend among mid-tier regional conglomerates reallocating capital away from capital-intensive energy infrastructure toward high-growth green mobility retail markets.
