RGT Berhad entered into supplemental share sale agreement to acquire remaining 40% equity interest in Rapid Growth Technology Sdn. Bhd. from Hor Lim Chee, Ng Choon Keat, Tan Song Chai, Lim Seat Hoe and Tan Ann Chee for approximately MYR 140 million.
September 17, 2020
Share
RGT Berhad (KLSE:RGTBHD) entered into supplemental share sale agreement to acquire remaining 40% equity interest in Rapid Growth Technology Sdn. Bhd. from Hor Lim Chee, Ng Choon Keat, Tan Song Chai, Lim Seat Hoe and Tan Ann Chee for approximately MYR 140 million on September 18, 2020. As per agreement, RGT Berhad will acquire 6 million shares and the consideration will be satisfied by issuing 283.64 million new ordinary shares (59.09 million shares will be held in escrow). Save for the obligations and liabilities in and arising from, pursuant to or in connection with the agreement, there are no other liabilities, including contingent liabilities and guarantees, to be assumed by RGT Berhad. Hor Lim Chee will sell 2.4 million shares, Ng Choon Keat will sell 1.5 million shares, Tan Song Chai will sell 1.2 million shares, Lim Seat Hoe will sell 0.6 million shares and Tan Ann Chee will sell 0.3 million shares. Post-closing, Rapid Growth Technology Sdn. Bhd. will become a wholly-owned subsidiary company of RGT Berhad. For the period ending June 30, 2020, Rapid Growth Technology Sdn. Bhd. had a revenue of MYR 67.2 million, net income of MYR 7.6 million, total common equity of MYR 70.5 million and total assets of MYR 98.3 million.
The deal is subjected to approval of non-interested shareholders of RGT Berhad, shareholders of Rapid Growth Technology Sdn. Bhd., approval for listing of new shares on Bursa Securities, approval from Securities Commission Malaysia, third party and any other government, public or regulatory authorities or bankers of Rapid Growth Technology Sdn. Bhd. The audit committee of Rapid Growth Technology Sdn. Bhd. is of the opinion that the transaction is fair, reasonable and on normal commercial terms and in the best interest of RGT Berhad. The deal is expected to complete in second quarter of 2020. As of December 2, 2020, application in relation to the transaction have been submitted to the Securities Commission Malaysia and Ministry of International Trade and Industry. The acquisition is expected to contribute positively to the consolidated earnings. Malacca Securities Sdn Bhd and UOB Kay Hian Securities (M) Sdn Bhd. acted as an independent financial advisor to non-interested directors & shareholders of RGT Berhad.
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.
RGT Berhad entered into supplemental share sale agreement to acquire remaining 40% equity interest in Rapid Growth Technology Sdn. Bhd. from Hor Lim Chee, Ng Choon Keat, Tan Song Chai, Lim Seat Hoe and Tan Ann Chee for approximately MYR 140 million.
RGT 
