CEKD Berhad (KLSE:CEKD) entered into an agreement to acquire 60% stake in KIT Technology Sdn Bhd from Yap Wan Lee and Wong Hur Shiaw for MYR 0.72 million on July 5, 2022. CEKD will acquire 480,000 ordinary shares, representing 60% of the total number of issued shares in KIT Technology.
The transaction will be funded by internally generated funds from current business operations. The transaction is subject to approval by board of directors and shareholders of CEKD; the approval of KIT TechnologyÆs board of directors and shareholders; and satisfaction of CEKD with the result of the legal and financial due diligence. The board of directors of CEKD have approved the transaction. The transaction is expected to be completed by first quarter of 2023. The Proposed Acquisition is expected to contribute positively to the earnings of CEKD for FYE 31 August 2022 and onwards.