KUALA LUMPUR: Tiger Synergy Bhd, a property developer and furniture maker, intends to venture into stockbroking business.
In a filing with Bursa Malaysia, the company said it has entered into a binding term sheet with Quest Investments Ltd (QST), which is listed on the Australia Securities Exchange, for the proposed acquisition of the entire equity interest in MQ Holdings Ltd for not less than HK$15 million (RM7.79 million).
It said MQ Holdings is a company incorporated in the British Virgin Islands, which in turn wholly owns Quest Stockbrokers (HK) Ltd (QSB).
Meanwhile, QSB is a Hong Kong company and the holder of an Exchange Participant Certificate issued by The Stock Exchange of Hong Kong Ltd, including two trading rights and a Type 1 Licence issued by the Securities and Future Commission of Hong Kong.
The sale consideration of HK$15 million shall be satisfied through the combination of cash and issuance of new shares in the issued and paid-up capital of Tiger Synergy to QST, according to the filing.
Tiger Synergy shares shall be issued at a 10% discount to the volume-weighted average market price for the five trading days.
The group said the term sheet is not expected to have a material impact on the share capital, gearing, consolidated earnings, net assets and substantial shareholders’ shareholdings for the financial year ending June 30, 2019.
QST is an Australian-registered company. It carries on business as a diversified financial services group with, inter alia, corporate advisory activities in Australia through Quest Securities (Australia) Ltd and stockbroking activities in Hong Kong through QSB.
The shares of Tiger Synergy fell 0.5 sen, or 6.25%, to close at 7.5 sen, with a market capitalisation of RM82.15 million.