Thursday 28 Mar 2024
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KUALA LUMPUR (Jan 14): Nexgram Holdings Bhd is acquiring a controlling 51% stake in a Kuantan-based logistic firm, Transeaways Shipping Sdn Bhd for RM41.2 million.

In a filing with Bursa Malaysia today, Nexgram said it yesterday signed a conditional share sale agreement with Hopscoth Invest & Trade Inc for the acquisition of 51,000 shares in Transeaways Shipping. The remaining 49% stake will continue to be held by Infire Trading Ltd.

Pursuant to the proposed acquisition, Nexgram has also entered into a profit guarantee agreement with Hopscoth where the latter guarantee and covenant to Nexgram that the audited total profit after tax derived from the ordinary course of business of Transeaways Shipping for the financial year ending Feb 28, 2017 shall not be less than RM3.5 million.

Nexgram said it will fund the proposed acquisition via internal cash and cash equivalents, and expects the transaction to be completed by the first quarter of 2016.

On the rationale, Nexgram said the logistics sector in Kuantan, where Transeaways Shipping operates its business, has witnessed an encouraging growth for the past few years and continue to be promising.

It added that the group's telecommunication, media and technology division could complement Transeaways Shipping’s operation flow by providing mobile tracking technology on top of its existing tracking and monitoring system.

In a separate filing, Nexgram said its executive director Alan How Han Lun, 39, has been redesignated as chief executive officer of the group, replacing Datuk Tey Por Yee, 40, who has resigned citing “to pursue his personal interest and goals” as a reason.

Tey, who is also the founder of Nexgram, also ceased to be a member of the remuneration committee of the group.

Nexgram (fundamental: 1.15; valuation: 1.1) shares closed unchanged at nine sen today, giving it a market capitalisation of RM169.3 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.)

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