Daibochi Berhad (KLSE:DAIBOCI) entered into an agreement to acquire Mega Printing & Packaging Sdn. Bhd. from Proshin Enterprise Sdn Bhd, Tan Chai Koon, Chong Choi Chun, Ng Yuk Ming, Phang Chak Thong, Ng Pey Ching and Lee Chee Keong for approximately MYR 130 million on May 3, 2019. 10% of the consideration amount to be deposited with the Proshin solicitor upon signing of the agreement on May 3, 2019, of which 50% on receiving the remittance slip evidencing payment of balance consideration & remaining 50% of the Deposit shall be held in escrow by the Proshin solicitors for 6 months from the completion date, and be released when solicitor receives a letter signed by the parties confirming it to be released or any deductions for any claim for loss/damages suffered by Daibochi as a result of breach by Proshin of their obligations and warranties under the agreement & in the event of a dispute over the entitlement to the escrow amount, the Proshin solicitors receipt of a duly sealed final order issued by a competent court regarding the dealing with the escrow amount, upon which the Proshin solicitors shall comply with accordingly balance 90% purchase consideration payable on the completion date minus any leakages and a sum equal to the value of the material adverse findings which are not capable of being remedied or not remedied to the satisfaction of the Daibochi. Deal is conditioned upon the completion of due deligence exercise by Daibochi & Proshin completing the remedy of any adverse material findings within 90 days. If prior to completion, it shall be found that any of the warranties, at completion not complied with or otherwise untrue or misleading in a material respect; the Proshin are in breach of any covenants and agreements required to be performed or caused to be performed by the Proshin under the agreement on or before the Completion Date; MPP or the Proshin have taken or threatened to take any action as a result of or in anticipation of any transaction that would be materially inconsistent with any of the warranties; or a governmental agency has enacted or proposed any legislation which would prohibit, materially restrict or materially delay the implementation of the transaction or the operations of MPP, the Daibochi, the Proshin or MPP have received notice of any injunction or other order, directive or notice restraining or prohibiting the consummation of the transaction contemplated by the agreement or notice that any of the foregoing is pending or threatened; the Daibochi shall serve a notice of breach on the Proshin to remedy the breach (if remediable), failing which the Purchaser shall be entitled to terminate the agreement and the Proshin shall forthwith return or procure the return of the deposit to the Daibochi. Daibochi intends to fund 20% of the purchase consideration internally & 80% from bank borrowing. Under the terms, 4.5 million shares were issued as a part of the transaction. Mega Printing will operate as a subsidiary of Daibochi post acquisition. The transaction has been funded through internally generated funds and or bank borrowings. The transaction is subject to due diligence investigation by the buyer, all approvals and consents including but not limited to consents or notifications to the financiers of Mega Printing, government and regulatory approval. On July 11, 2019, the shareholders of the Daibochi Berhad has approved the transaction. The transaction is expected to be completed by the third quarter of 2019. UOB Kay Hian Securities (M) Sdn Bhd acted as the adviser for Daibochi. Daibochi Berhad (KLSE:DAIBOCI) completed the acquisition of Mega Printing & Packaging Sdn. Bhd. from Proshin Enterprise Sdn Bhd on August 5, 2019. All the conditions were fulfilled and the remaining balance purchase consideration under the agreement has been paid in full on August 5, 2019.