KUALA LUMPUR: Advance Synergy Bhd plans to buy a 50% stake in South Korea-based SH Tour Co Ltd for US$800,000 or RM2.766 million in cash, in a bid to venture into the Korean market for new travel and tour packages and products.

In a filing with Bursa Malaysia this evening, Advance Synergy said its indirect wholly-owned subsidiary Orient Escape Travel Sdn Bhd (OET) had signed a share purchase agreement to acquire 35,000 shares in SH Tour, which is located in Nonhyun-dong, Gangnam-gu, Seoul.

“This venture rides on the Korean Wave such as K-Pop, K-Fashion, K-Beauty and K-Wellness. It will provide our travel division an opportune presence in South Korea which will be well positioned to promote growth in both inbound and outbound tourism.

“The proposed acquisition is in line with the intention of our travel and tours division to have a greater presence in Asia and to further enhance its overall long term growth plan,” it said.

Advance Synergy said the proposed acquisition would be funded by internally generated funds and bank borrowings.

SH Tour was incorporated in March 1998 and is principally engaged in travel and tours business. Share price of Advance Synergy was unchanged at 16 sen today, with more than 1.484 million shares done. It has a market capitalisation of RM106 million.