SWS Capital Berhad (KLSE:SWSCAP) signed a share purchase agreement to acquire Ee-Lian Enterprise (M) Sdn. Bhd. from group of sellers for MYR 36.1 million on February 28, 2017. Under the terms of the transaction, SWS Capital Berhad will acquire 11 million ordinary shares, representing 100% stake in Ee-Lian Enterprise (M) Sdn. Bhd. As consideration, MYR 3.61 million will be paid to SWS Capital Berhad’s solicitors as stakeholder upon signing of the agreement, which will be released on the third business day after the last of all the conditions are satisfied, MYR 28.5 million will be paid within 7 business days and MYR 4 million will be paid on completion date. In a related transaction, SWS Capital Berhad entered into a share purchase agreement to acquire the remaining 29.4% stake in Poh Keong Industries Sdn. Bhd. from Gan Poh Keong and Lee Geok Kim for MYR 3.2 million and NS Creative Sdn Bhd entered into a share purchase agreement to acquire Sin Wee Seng Industries Sdn. Bhd. from SWS Capital Berhad for MYR 30.7 million on February 28, 2017. The consideration will be funded from the disposal of Sin Wee Seng Industries Sdn. Bhd. In case, the disposal is not successful, the consideration will be funded as to 40% from the internally generated funds and 60% from the bank borrowings. Upon completion, Ee-Lian Enterprise (M) Sdn. Bhd. will be a wholly-owned subsidiary of SWS Capital Berhad. The employees of Ee-Lian Enterprise (M) Sdn. Bhd. will remain with the group after the transaction. The transaction is subject to completion of a due diligence exercise, approval of the shareholders of SWS Capital Berhad and other approvals from appropriate governments, governmental, supranational or trade agencies, courts or other regulatory bodies. As of May 12, 2017, the deal was recommended to the shareholders by the Board of SWS Capital. As of June 19, 2017, the deal was approved by the shareholders of SWS Capital. The transaction is expected to be completed by second half of 2018. The transaction is expected to be earnings accretive and to contribute positively to the future earnings of SWS Capital Berhad. TA Securities Holdings Berhad acted as a financial adviser for the non-interested Directors and non-interested shareholders of SWS Capital Berhad and M&A Securities Sdn Bhd acted as a financial advisor to SWS Capital Berhad.