KUALA LUMPUR, 9 March 2020 – Sinotop Holdings Bhd has proposed to acquire a 51% stake in Television Airtime Services Sdn Bhd (TAS) for a total of RM13 million, in cash and shares.
In a filing with Bursa Malaysia on March 6, Sinotop said it has inked a Heads of Agreement (HOA) with the stakeholder Sabri Ab Rahman to further negotiate the proposal.
The transaction involves Sinotop acquiring a 30% stake in TAS at a consideration of RM7million comprising of RM5 million via the issuance of 38.46 million new shares in Sinotop at an issue price of 13 sen per Sinotop share, and RM2 million cash.
Further is a proposed subscription by Sinotop and Sabri of 5.99 million and 1.02 million new TAS shares respectively at RM1.00 per TAS Share, for a total subscription amount of RM5.99million and RM1.02million respectively.
Upon completion of the transactions, Sinotop’s shareholding in TAS will be at 51%.
TAS currently own 20% equity interest in Dapat Vista (M) Sdn Bhd (DVSB), developer of MyPay portal (a one-stop e-government service). While the remainder 80% of DVSB is being held by HeiTech Padu Bhd (HTD).
HTD had in December 2019 entered into a sales and purchase agreement with TAS to dispose 60% equity interest in DVSB to TAS for a total consideration of RM13.5 million, together with the settlement of outstanding amount by TAS to HTP amounting to RM4 million. This would increase TAS’ equity stake in DVSB to 80%
The prospect of the business of DVSB and MyPay, involving in the mobile technology segment which the industry is growing and evolving at an overwhelming pace around the world.
The issue price of RM0.13 per Sinotop Share for the Proposed Shares Acquisition represents a premium of approximately 17% to the 5-day volume weighted average market price of Sinotop Shares up to and including 5 March 2020 of RM0.1111.
The HoA is valid for 60 days, or an additional 30 days or more as the parties agree, for a definitive agreement to be inked between them for the proposed transaction.
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