KUALA LUMPUR: Zen Tech International Bhd has proposed to acquire a 70% stake in Alpha Fintech Sdn Bhd for RM10mil cash.
In a filing with Bursa Malaysia, the IT service management company said it entered into a share sale agreement (SSA) with Koh Chee Siong for the acquisition of 4.16 million ordinary shares, representing a 70% stake in Alpha.
Alpha will become a 70%-owned subsidiary of Zen Tech upon completion of the proposed acquisition. Alpha is principally engaged in selling credit card terminals, prepaid Visa or Mastercard, and other IT activities.
Zen Tech said the proposed acquisition presents an opportunity for the group to acquire an ICT company which is in line with the group’s expansion plan with the potential synergistic benefits to be derived from the integration of Aplha with the group and to improve the financial performance of the group’s business in the IT and ICT segment in the future.
“While the target company has been profit-making in the past few years, there is no certainty that the target company will continue to register profits in the future post-acquisition, such risk has been partly mitigated via the profit guarantee.
“In the longer term, the group expects the earnings of Alpha would contribute positively to the overall financial performance of the group,” it said.