MALAYSIA —Mikro MSC Berhad is expanding its footprint in the electrical and electronics value chain by acquiring full ownership of security cable wholesaler Broadguard Sdn Bhd for RM30 million. The transaction will be funded entirely through the issuance of 51.72 million new Mikro shares at RM0.58 each, representing a 2.5% discount to the stock's five-day volume-weighted average price. Broadguard, founded in 2004, distributes cables and wiring accessories tailored for closed-circuit television, access control, and security surveillance systems. Mikro MSC Berhad is a Malaysia-based technology company specializing in the design and manufacturing of electrical protection relays, power distribution systems, and related electronics.
The strategic move allows Mikro to diversify beyond its core equipment manufacturing and signage operations into security infrastructure distribution. By integrating Broadguard's commercial network, Mikro gains immediate exposure to high-growth segments driven by Malaysia's rapidly expanding data center footprint, commercial security upgrades, and digital infrastructure projects. Broadguard brings strong financial momentum, having recorded an audited net profit of RM2.15 million in FY2026 and offering a three-year cumulative profit guarantee. This profit commitment provides immediate earnings visibility and downside protection for Mikro's balance sheet while preserving cash reserves for operational scaling.
From a market perspective, the transaction highlights a growing trend of industrial electronics manufacturers verticalizing into specialized distribution to capture downstream demand. Demand for security cables and surveillance infrastructure is accelerating, backed by robust investment in data infrastructure, cloud computing, and industrial automation across Southeast Asia. The transaction enhances overall supply chain capabilities for security equipment distributors while establishing a unified operational framework between manufacturing and wholesale channels.
