LFE Corporation Berthed (KLSE:LFECORP) entered into a conditional shares sale agreement to acquire a 51% stake in Cosmo Property Management Sdn Bhd from Resolute Accomplishment Sdn. Bhd. for MYR 33.8 million on October 5, 2020. Under the terms of the transaction, LFE will acquire 0.38 million shares of Cosmo and will pay MYR 21 million in cash and will issue 65.5 million LFE shares at an issue price of MYR 0.10 per LFE Share. Upon completion, LFE will hold 51% stake in Cosmo Property. The transaction will be financed through entirely via the proceeds to be raised from the Proposed Rights Issue in the maximum scenario. Under the Minimum Scenario, there will be a shortfall of MYR 8.34 million between the Remaining Cash Payment and the proceeds earmarked for the settlement of the consideration. LFE intends to fund the shortfall through a combination of internally generated funds and/ or bank borrowings, the exact quantum of which will be determined by the Board at a later date upon obtaining all the necessary approvals. Cosmo Property reported a shareholders’ fund of MYR 16.8 million, revenues of MYR 27.2 million and profit after tax of MYR 6 million in the year ending on December 31, 2019. The transaction is subject to the listing and quotation for the consideration shares to be issued pursuant to the transaction on the Main Market of Bursa Securities, approval of the shareholders of LFE, LFE being satisfied with the result of the due diligence audit conducted by LFE and/or through its auditor/accountant/solicitors/ other advisers on CPMSB’s account and affairs and the completion of the proposed rights issue. On November 27, 2020, the proposals was submitted to Bursa Malaysia Securities Berhad. On January 4, 2021, the listing of 65.5 million LFE shares was approved by the Main Market Listing Requirements of Bursa Securities. The deal is expected to complete in the first quarter of 2021. The deal is expected to be completed by second quarter of year 2021. As of April 1, 2021, LFE Corporation and parties of the agreement have mutually agreed to extend the deadline to June 2, 2021 to fulfill the conditions precedent of the agreement. The transaction is not expected to have any effect on the consolidated earnings of the Group for the FYE 31 December 2020. UOB Kay Hian Securities (M) Sdn Bhd. acted as financial advisor to LFE Corporation Berhad. LFE Corporation Berthed (KLSE:LFECORP) completed the acquisition of 51% stake in Cosmo Property Management Sdn Bhd from Resolute Accomplishment Sdn. Bhd. on May 27, 2021. As per the transaction all conditions have been fulfilled and 65.5 million Consideration Shares had been issued and allotted on May 25, 2021.