KUALA LUMPUR (July 9): Censof Holdings Bhd will spend S$10 million (RM28.06 million) to acquire a 51% stake in Asian Business Software Solutions Pte Ltd (ABSS), which develops, sells and markets the MYOB brand software products.

Censof today signed a share sale and purchase agreement (SSPA) with ABSS to acquire 306,000 shares in the latter.

ABSS currently sells its MYOB software products to small and medium enterprises (SMEs) and its principal markets are Singapore, Malaysia and Hong Kong.

Censof is expected to fund the proposed acquisition through a private placement exercise, as well as bank borrowings.

Censof group managing director Ameer Shaik Mydin said the proposed acquisition will allow the group to hold on to its exclusive distribution rights to distribute and market MYOB software products in Malaysia, and at the same time maximise its earnings and expand its business presence. 

"The proposed acquisition will provide Censof additional avenues and opportunities to tap into the growing SME market. Management believes that with ABSS, this will provide a channel for Censof to [regionalise our clientele]," said Ameer.

Censof (fundamental: 2.1; valuation: 0.5) shares closed up 1.61% at 31.5 sen today, bringing a market capitalisation of RM150.87 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)