Excel Force MSC Berhad (KLSE:EFORCE) entered into a share sale agreement to acquire 20% stake in Sandman Studios from Chen Hui for MYR 19.2 million from on February 6, 2024. Upon completion of the acquisition, Sandman will become a wholly-owned subsidiary of EForce. The cash consideration is expected to be funded via internally generated funds.

Sandman Studios reported revenues of MYR 40.6 million and net income of MYR 6.6 million for year ended December 31, 2023. The transaction is conditional upon satisfaction results on the due diligence, EForce?s board of directors? approval, Sandman?s board of director?s approval and the approvals, consents, authorizations, permits or waivers of any other relevant governmental or regulatory body and any other third parties necessary.

Barring any unforeseen circumstances, the proposed acquisition is expected to be completed by the first quarter of 2024. The proposed acquisition is not expected to have an immediate effect on the earnings of the group for the financial year ended June 30, 2024.