Sanichi Technology Berhad (KLSE:SANICHI) entered into share sale agreement to acquire 70% stake in Persada Ternama Sdn. Bhd from Hafizah Binti Hussein, Hashim Bin Yusoff and Misna Binti Razuni for MYR 8 million on April 10, 2018. The consideration is paid in cash. Under the terms, Sanichi Technology Berhad will acquire 0.07 million ordinary shares and Sanichi Technology Berhad will pay a non-refundable sum of MYR 1 million prior to the execution of the share sale agreement as stakeholder and shall be released to the Hafizah Binti Hussein, Hashim Bin Yusoff and Misna Binti Razuni upon execution of the share sale agreement; the sum of MYR 4 million shall be paid to the Sanichi Technology Berhad Solicitors as a stakeholder upon signing of the share sale agreement and shall only be released to the Hafizah Binti Hussein, Hashim Bin Yusoff and Misna Binti Razuni upon fulfilment of conditions subsequent. In the event the conditions subsequent are not fulfilled within the Cut-Off Date, the Sanichi Technology Berhad Solicitors shall be authorised to release the partial consideration to the Sanichi Technology Berhad and the remaining sum of MYR 3 million shall be paid within fourteen business days upon duly issuance of the development order for the project by the local authorities. The transaction will be funded from internally generated funds of Sanichi Technology Berhad. Upon completion, Persada Ternama Sdn. Bhd will become a subsidiary of Sanichi Technology Berhad. The deal is subject to Sanichi Technology Berhad being satisfied with the outcome of due diligence to be conducted on Persada Ternama Sdn. Bhd; Persada Ternama Sdn. Bhd having obtained the rights to develop the project under a signed joint development agreement between Persada Ternama Sdn. Bhd and Kejora pursuant to Kejora’s Letter of Offer; Persada Ternama Sdn. Bhd having obtained from Kejora, a limited power of attorney to develop the land including such power to deal with the land for the purpose of using the land as security to obtain funding for the project subject to the Sanichi Technology Berhad providing a corporate undertaking in favour of Kejora for the purpose of obtaining the aforesaid power of attorney with such terms and conditions which are reasonable for a corporate undertaking of such nature; all existing directors of Persada Ternama Sdn. Bhd shall have resigned except for the nominee director of the Sanichi Technology Berhad and two directors to be selected by the Hafizah Binti Hussein, Hashim Bin Yusoff and Misna Binti Razuni to remain as directors of Persada Ternama Sdn. Bhd. Such directors appointed by the Hafizah Binti Hussein, Hashim Bin Yusoff and Misna Binti Razuni shall not be entitled to any remuneration or directorship fees and shall resign immediately upon the project completion Sanichi Technology Berhad shall be entitled to appoint additional directors such that the Sanichi Technology Berhad will have majority control over the Board of Directors of Persada Ternama Sdn. Bhd and Such other waivers, consents or approvals as may be required from any third party (including financial institution) or governmental, regulatory body or relevant authorities having jurisdiction over any part of the transactions contemplated under the share sale agreement. The transaction is not subject to the approval of shareholders of the Sanichi Technology Berhad. The completion of the share sale agreement shall occur upon signing of the share sale agreement. However, the release of the partial consideration is subject to the conditions as set out above which is expected to be obtained by third quarter of the year. The transaction will not have any effect on the share capital and the shareholdings of substantial shareholders of the Sanichi Technology Berhad and will not have any material effect on the earnings per share, net assets per share and gearing of the Sanichi Technology Berhad and its subsidiaries for the financial year ending December 31, 2018. Sanichi Technology Berhad (KLSE:SANICHI) cancelled the acquisition of 70% stake in Persada Ternama Sdn. Bhd from Hafizah Binti Hussein, Hashim Bin Yusoff and Misna Binti Razuni on April 10, 2019.