Detailed Analysis and Shareholder Considerations
Transaction Structure and Payment Terms
Under the SSA, MSM (via GCC) will subscribe for 42,858 new ordinary shares in X Miles, representing a 30% stake post-issuance. The RM1 million purchase consideration is divided as follows:
About X Miles Sdn Bhd
X Miles, incorporated in April 2025 in Malaysia, is engaged in supplying and providing comprehensive EV charging solutions for both residential and commercial markets. The company is led by founder Wong Chee Weng, who brings over 15 years of experience in electrical and green energy industries. As of November 2025, X Miles reported unaudited revenue of RM410,000, net profit of RM75,000, and net assets of RM175,000.
Strategic Benefits and Potential Share Price Impact
MSM’s board sees this acquisition as a key step toward expanding its presence in the green energy and EV sectors. By leveraging X Miles’ technical expertise and market network, MSM aims to unlock new business opportunities, enhance customer reach, and accelerate penetration into Malaysia’s EV market. The deal also opens doors for R&D collaborations and local manufacturing of Malaysian-made EV chargers—a currently underserved market segment. This could position MSM at the forefront of Malaysia’s green mobility transformation and deliver long-term value for shareholders.
The deal may be price sensitive, as MSM’s entry into the EV charging market could lead to enhanced revenue streams and growth prospects, especially if X Miles delivers on its ambitious financial targets.
Financial Effects
The acquisition will have a modestly positive impact on MSM’s financials:
- Net Tangible Assets (NTA) per Share: Increase from 167.84 sen to 167.93 sen.
- Earnings per Share (EPS): Increase from 42.17 sen to 42.26 sen.
- No dilution: No new MSM shares will be issued for the transaction.
While the financial uplift is incremental, the long-term strategic value and potential for future growth in the EV sector could be more substantial if X Miles meets its targets.
Other Key Considerations
- No Related Party Concerns: The founder of X Miles has no relationship with MSM’s directors, substantial shareholders, or the Group itself.
- No Service Contracts: No new MSM director appointments or service contracts are proposed as a direct result of the acquisition.
- Transparency and Inspection: Investors can inspect the SSA at MSM’s registered office for three months from the date of the announcement.
- Completion Conditions: The transaction is subject to completion of share allotment, documentation, and appointment of MSM’s nominee director in X Miles, as per Malaysian company law.
Conclusion
The acquisition of a significant minority interest in X Miles Sdn Bhd marks MSM International Limited’s strategic foray into the Malaysian EV charging market. The deal is structured to incentivize strong performance at X Miles, while providing MSM with board-level influence and access to a rapidly growing sector. While the immediate financial impact is modest, the long-term growth prospects and alignment with green energy trends could prove to be price sensitive and relevant for shareholders.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisors before making any investment decisions. The information herein is based on publicly available documents and may be subject to change. MSM International Limited and its related parties accept no liability for any decisions made based on this article.
View MSMIntl Historical chart here
