PUC active, rises 8.70% on plan to acquire Pictureworks

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KUALA LUMPUR (Jan 2): PUC Bhd shares rose 8.70% in active trade after the company said it is buying the rest of Pictureworks Holdings Sdn Bhd it does not already own from its group managing director and chief executive officer Cheong Chia Chou and two other companies for RM167.5 million.

At 9.20am, PUC rose 1 sen to 12.5 sen with 9.85 million shares traded.

The ACE Market-listed firm said it plans to acquire 12.34 million shares or a 67% stake in Pictureworks from Cheong, Superb Go Sdn Bhd and Beauty World Holdings Pte Ltd (BWH), through a combination of new share issuance and cash.

Cheong currently holds a 42.22% stake in Pictureworks, SGSB 20% and BWH 4.78%.

PUC said it has entered into a conditional sale of shares agreement with Cheong and Superb Go for the acquisition of their collective 62.22% shareholding in Pictureworks for RM155.55 milllion.

It added that it is in the midst of negotiation with BWH for the acquisition of the remaining 880,341 Pictureworks shares owned by BWH for RM11.95 million.

The proposed acquisition, which requires PUC shareholders’ approval, is expected to be completed by the second quarter of 2019.