KUALA LUMPUR: Artroniq Bhd offered to acquire a 100% stake in Paklin Venture capital Sdn Bhd (PVCSB) for a purchase consideration of RM1.6 million in cash.
In a filing with Bursa Malaysia, the information and communications technology (ICT) company said it had entered into a share sale agreement (SSA) with Khoo Ai Foong and Khoo Ai Chern, to acquire two million common shares of PVCSB representing a 100% interest in PVCSB.
Upon completion of the proposed acquisition, PVCSB will be a wholly owned subsidiary of Artroniq.
PVCSB is primarily engaged in the provision of financing and investment advisory services.
It is a licensed lender under the Lenders Act 1951 and is also governed by the Lenders (Supervision and Licensing) Regulations 2003 and the Lenders (Composition of Licensing) Regulations 2003 offences).
For the audited financial year ended 30 June 2021 (FY21) and the unaudited FY22, PVCSB recorded profit after tax of RM100,000 and RM1.3 million respectively.
As of June 30, PVCSB has unaudited net assets of RM1.66 million.
“As part of the ongoing efforts to find a new source of income for the group, the group has identified the proposed acquisition to enter the money lending business, which is expected to provide the group with a stable and recurring revenue stream. .
“The new business was considered after considering the growth prospects of the lending market in Malaysia, particularly in the alternative lending market, due to the strict lending requirements imposed by licensed financial institutions,” Artroniq said. .
He said the proposed acquisition is not subject to Atroniq shareholder approval.
However, the proposed acquisition is subject to the approval of the Ministry of Housing and Local Government.