KUALA LUMPUR (Jan 25): Censof Holdings Bhd has proposed a private placement to raise up to RM25.09 million, partly to fund the acquisition of an additional stake in a subsidiary.

In a bourse filing, the group said it was placing out up to 100.35 million new shares or 20% of its shareholding to third party investors. 

The indicative issue price of the placement shares is 25 sen apiece, it said.

Censof said it will be using RM14.06 million of the proceeds of the placement to acquire an additional 30.87% interest in its 58.20%-owned subsidiary Asian Business Software Solutions Pte Ltd.

Asian Business Software is involved the development and supply of financial management and accounting software for small to medium enterprises (SMEs).

Censof today signed an agreement to acquire the additional 30.87% stake from Paul Alistair Jennings, Fox Equities Pty Ltd and Lum Choong Eued.

If the agreement does not go through, the group said it will use this amount for working capital requirements, in addition to RM10.82 million of the placement proceeds that is earmarked for the purpose.

Censof said that following the placement, its share capital will increase to 602.11 million shares, from 501.76 million shares currently.

The placement is expected to be completed in the first half of 2021, the group said.

Censof shares finished 0.5 sen or 2% higher at 25.5 sen today, valuing the group at RM127.95 million. The counter saw 7.59 million shares traded.