Asia Knight Berhad completed the acquisition of 60% stake in Rapid Growth Technology Sdn. Bhd. from Hor Lim Chee, Ng Choon Keat, Tan Song Chai, Lim Seat Hoe and Tan Ann Chee.
May 21, 2018
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Asia Knight Berhad (KLSE:AKNIGHT) entered into a share sale agreement to acquire 60% stake in Rapid Growth Technology Sdn. Bhd. from Hor Lim Chee, Ng Choon Keat, Tan Song Chai, Lim Seat Hoe and Tan Ann Chee for MYR 50.6 million on August 14, 2017. As per the terms of the transaction, MYR 31 million will be paid in cash along with 170 million Asia Knight shares. Asia Knight Berhad shall acquire 9 million shares in Rapid Growth. In related transactions, Asia Knight Berhad announced a regularisation plan which included Asia Knight's capital reduction and proposed rights issue with warrants involving the issuance of 348.8 million rights shares together with 174.4 million free warrants is to be implemented on a renounceable basis of 6 rights shares together with 3 free warrants for every 1 existing shares held by the shareholders. The cash portion of the purchase consideration shall be financed by the proceeds from the proposed rights issue with warrants and shall be paid to the sellers upon the listing of the rights shares and warrants on the Main Market of Bursa Securities. Rapid Growth Technology Sdn. Bhd. reported net assets of MYR 45.03 million, revenue of MYR 66 million, profit after tax of MYR 8.26 million and profit before tax of MYR 10.7 million for the year ended December 31, 2016. The transaction is subject to Asia Knight's shareholders’ approval, completion of the proposed capital reduction, approval from Bursa Securities for the listing and quotation of new Asia Knight Shares to be issued pursuant to the proposed regularisation plan on the Main Market of Bursa Securities and other government, public or regulatory authorities or bankers. As on November 23, 2017, Bursa Securities approved the listing and quotation of new Asia Knight Shares to be issued pursuant to the transaction. As per the circular dated December 22, 2017, the board of directors of Asia Knight recommends the shareholders to vote in favor of the resolutions pertaining to the proposed regularization plan, part of which comprises of the proposed acquisition. The extraordinary general meeting (EGM) shall be held on January 17, 2018. As of January 17, 2018, the shareholders approved the transaction at the EGM. As per the circular dated December 22, 2017, the transaction is expected to be completed in June, 2018. The proposed acquisition is expected to be earnings accretive and is expected to strengthen the Asia Knight’s financial position and contribute positively to future earnings. Mercury Securities, Wong Wing Seong, Kristyn Gan Shu-Yi and Pam Lee of BDO Capital Consultants Sdn Bhd acted as financial advisors for Asia Knight Berhad. Baker Tilly acted as accountant for Asia Knight Berhad. Wong Beh & Toh acted as legal advisor to Asia Knight Berhad. Mercury Securities Sdn. Bhd. acted as financial advisor and Crowe Horwath Malaysia acted as accountant to Rapid Growth Technology Sdn Bhd.
Asia Knight Berhad (KLSE:AKNIGHT) completed the acquisition of 60% stake in Rapid Growth Technology Sdn. Bhd. from Hor Lim Chee, Ng Choon Keat, Tan Song Chai, Lim Seat Hoe and Tan Ann Chee on May 22, 2018.
RGT Berhad is a Malaysia-based investment holding company. The Company operates through two segments: Engineered Polymer Products, and Factory Automation and Precision Engineering. The Engineered Polymer Products segment is engaged in the designing, manufacturing and sale of high precision engineered polymer products including full assembly and related accessories. The Factory Automation and Precision Engineering segment is engaged in the designing, manufacturing and sale of automated machinery, high precision metal parts, components and related accessories. The Company provides services as an original design manufacturer for engineered polymer products in addition to manufacturing products based on designs and specifications provided by its customers. It offers value-added service in the form of product design to its existing and new customers and also new markets, not only in the hygiene care and air-care, but also in the automotive, medical and consumer products.
Asia Knight Berhad completed the acquisition of 60% stake in Rapid Growth Technology Sdn. Bhd. from Hor Lim Chee, Ng Choon Keat, Tan Song Chai, Lim Seat Hoe and Tan Ann Chee.