KUALA LUMPUR (Oct 13): Supercomnet Technologies Bhd is acquiring the remaining 80% stake in Supercomal Medical Products Sdn Bhd (SMP) in a related party deal.

In a filing today, Supercomnet said it is buying the stake from Shiue Jong-Zone and persons acting in concert for RM80 million — about 1.7 times its market capitalisation of RM47.39 million.

Shiue is the managing director of Supercomnet, with a 19.09% direct stake in the company.

The acquisition will be satisfied via a cash payment of RM4 million and the issue of 400 million new Supercomnet shares — about 1.65 times its current outstanding shares — at 19 sen apiece. This represents a 5% discount to its last closing share price of 20 sen.

Supercomnet said the acquisition will increase the combined shareholding in the company of Shiue and persons acting in concert to 74.68%, from 32.98% presently.

Subsequently, Supercomnet is also seeking from Securities Commission Malaysia an exemption to undertake a mandatory take-over offer for shares not owned by Shiue and persons acting in concert.

SMP manufactures cables for medical devices. The company — currently 20% owned by Supercomnet — has a share capital of RM10 million, and is debt-free.

For the year ended Dec 31, 2016, SMP’s profit after tax (PAT) stood at RM16.22 million. It also recorded a PAT of RM8.71 million for the six months ended June 30, 2017.

Supercomnet’s share price closed unchanged at 20 sen with 25.1 million shares traded. Year-to-date, the counter has appreciated by 44.44%.