KUALA LUMPUR (Oct 23): Retail technology solutions provider Radiant Globaltech Bhd has obtained its shareholders’ approval to acquire an 80% stake in Grand-Flo Spritvest Sdn Bhd (GF Spritvest) for RM11.6 million cash.
Radiant Globaltech had on Sept 10 said the remaining 20% will be held by Jejaka 7 Capital Sdn Bhd, in which GF Spritvest director and chief executive officer Cheng Ping Liong holds majority equity interest of 55%.
In a bourse filing, Radiant Globaltech said its shareholder approved the acquisition at its extraordinary general meeting today.
It said the acquisition of GF Spritvest would allow the group to expand its customer coverage to include non-retail customers such as fast-moving consumer goods (FMCG), electronics, and utilities industries in Malaysia.
Radiant Globaltech managing director Paul Yap Ban Foo said the firm intends to integrate GF Spritvest’s software offerings to its AX B2Ba platforms, and combine technical support service teams.
“This allows us to create a synergistic effect through enhanced solutions and capture a larger market share in the non-retail segments, including the FMCG, electronics and utilities segments.
“Once the regional borders are open, we will have the opportunity to bring GF Spritvest’s software offerings to countries where we have established a direct presence, namely Cambodia, Vietnam and Thailand.
“This would bring us one step closer to reaching our goal of becoming a leading total integrated technology player,” Yap said.
Radiant Globaltech said the acquisition is supported by a service agreement with Cheng, who will continue to lead GF Spritvest.
Further, it said Cheng would provide a cumulative net profit guarantee of RM3.2 million from the completion date of the share sale agreement (SSA) until the financial year ending Dec 31, 2022.
The firm said the acquisition is expected to be completed in the fourth quarter of 2020, pending the fulfilment of terms of the SSA
A unit of Main Market-listed Grand-Flo Bhd, GF Spritvest provides electronic data capture and collation solutions that enable businesses to manage and collate data with barcode and radio-frequency identification technology.
Its clientele includes prominent companies in the fast-moving consumer goods and electronics industries, as well as government-linked companies in Malaysia.
At midday break today, Radiant Globaltech rose 7.35% or 2.5 sen to 36.5 sen, valuing it at RM191.69 million.