KUALA LUMPUR (Jan 6): Property developer Tiger Synergy Bhd (TSB) has signed a memorandum of understanding (MOU) to acquire printed circuit board (PCB) services company BPE Synergy Engineering Sdn Bhd, through a share swap totaling RM16 million of consideration.

TSB managing director Shirley Tan Lee Chin said the company expects a 200% year-on-year (y-o-y) improvement in revenue, after completing the acquisition and the launching of its Alam Impian project.

"We hope to complete the acquisition by the first half of 2016 (1H16). The agreement with BPE will include a profit guarantee of RM2 million per year, over three years, and the company generates about RM18 million in revenue per year.

"With the launch of our new property in 2016 and the acquisition, we expect a 200% increase in our revenue for the financial year ending June 30, 2016," Tan told the media at a briefing today.

The share swap between the two parties entail the acquisition of 1.8 million shares in BPE, in exchange for the issuance of 200 million ordinary shares at an issue price of 8 sen per share, equivalent to RM16 million.

"This acquisition provides a better competing position of the company in Malaysian property market, while enhancing our flexibility in the design of our properties. We also foresee continued strong demand for homes that offer products and design concepts, which meet customers' lifestyle needs and aspirations," said Datuk William Tan Wei Lian.

He added that the company has property projects worth RM500 million in gross development value (GDV), to be launched over the next two years.

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