Wegmans Holdings Berhad (KLSE:WEGMANS) entered into an agreement to acquire 90% stake in Wison Screw Industries Sdn. Bhd. from BS VALUE SDN. BHD. and Kek Wee Beng for MYR 16.7 million on December 24, 2020. Under the terms of the acquisition Wegmans Holdings Berhad will acquire 0.9 million shares and issue 50.03 million shares as part of consideration. Prior to acquisition BS VALUE SDN. BHD. holds 60% stake and Kek Wee Beng holds 40% stake in Wison Screw Industries Sdn. Bhd. Post completion BS VALUE SDN. BHD. will no longer have any stake and Kek Wee Beng will retain 10% stake in Wison Screw Industries Sdn. Bhd. Post completion, WSI will become a 90%-owned subsidiary of Wegmans. For the year ended December 2019, Wison Screw Industries Sdn. Bhd reported revenues of MYR 15.6 million, total assets of MYR 15.7 million, net income of MYR 0.87 million, shareholder equity of MYR 9.4 million.

The transaction is subject to approvals from Wegmans Holdings Berhad board, the Bursa Securities and any other relevant authorities, if required, the Company being satisfied in all material respects, the consents of all financial institutions, contracting parties, licensing authorities and any other parties affecting WSI to which consent is required for the SSA or any transactions is obtained, Wegmans receiving evidence in form and substance and on terms and conditions (if any) that all other governmental, public or regulatory authorities whose approvals are considered necessary in relation to the SSA or any transactions or matters contemplated by it have given such approvals to the extent considered necessary, the Vendors shall cause to be delivered the audited financial statements for the FYE December 31, 2020, as soon as reasonably practicable and at any date not later than ten Business Days from the date the audited financial statements for the FYE December 31, 2020 is duly approved by the board of directors of WSI and at least ten Business Days prior to the last condition date of the SSA. Vendors have provided a guarantee that the audited profit after tax of WSI based on the audited financial statements of WSI for the financial year ending December 31, 2021 will not be less than MYR 3 million and if it is less then the Vendors agreed to reimburse Wegmans for the shortfall in cash. The acquisition is expected to be completed by second quarter of 2021.

As of January 27, 2021, Wegmans submitted an application to Bursa Securities in respect of the listing and quotation of up to 50,030,800 Consideration Shares to be issued pursuant to the transaction on the Main Market of Bursa Securities. As of February 9, 2021, Bursa Malaysia Securities Berhad ("Bursa Securities") approved the listing and quotation of up to 50,030,800 new ordinary shares in Wegmans to be issued pursuant to the Proposed Acquisition on the Main Market of Bursa Securities. The approval by Bursa Securities is subject to the following conditions, Wegmans and RHB Investment Bank Berhad ("RHBIB"), being the Manager for the Proposed Acquisition must fully comply with the relevant provisions under the Main Market Listing Requirements at all times pertaining to the implementation of the Proposed Acquisition, Wegmans and RHBIB are required to inform Bursa Securities upon completion of the Proposed Aquisition, Wegmans is required to furnish Bursa Securities with a written confirmation of its compliance with the terms and conditions of Bursa Securities' approval once the Proposed Acquisition is completed and In the event the Proposed Acquisition is not completed before the next Annual General Meeting, Wegmans is required to furnish a certified true copy of the resolution passed by Wegmans's shareholders for a general mandate under Sections 75 and 76 of the Companies Act 2016 at Wegmans's forthcoming Annual General Meeting. As of Mach 29, 2021, the Board wishes to announce that the Company and the sellers entered into a stakeholder agreement with UBB Amanah Berhad to appoint the Security Stakeholder as stakeholder in respect of the Consideration Shares to be pledged as security for the Profit Guarantee on the terms and conditions as stated in the Share Sale Agreement, Supplemental Share Sale Agreement and letter. The stakeholder agreement shall be terminated upon receipt by the security stakeholder of a written notice from the purchaser confirming the discharge or satisfaction of Vendors' obligations pursuant to the Profit Guarantee dated March 26, 2021.