KUALA LUMPUR (Sept 10): Retail technology solutions provider Radiant Globaltech Bhd is proposing to acquire an 80% stake in Grand-Flo Spritvest Sdn Bhd (GF Spritvest) for RM11.6 million cash to expand its domestic customer coverage and increase its suite of software and other services to clients.
In a statement to Bursa Malaysia, Radiant Globaltech said it signed the conditional share sale agreement with GF Spritvest to acquire 80% of the group’s issued share capital.
Radiant Globaltech said the remaining 20% will be held by Jejaka 7 Capital Sdn Bhd, in which GF Spritvest’s director and chief executive officer Cheng Ping Liong holds majority equity interest of 55%.
Radiant Globaltech managing director Paul Yap Ban Foo said the acquisition dovetails with the group’s strategy in strengthening its industrial customer base to complement its current stronghold amongst retail players.
“Besides the wider coverage in customer sectors, Radiant Group benefits not only by immediately expanding our suite of products and services, but also in combining resources for further development of technological solutions to digitalise operations for customers.
“This strengthens our overall competitiveness in the market and positions us as a full-service solution provider for corporations of various sectors. This is an opportune acquisition for Radiant Group to sustain our long-term growth and support the nation’s increasingly digital economy,” he said.
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.
Simultaneously, Radiant Globaltech said it proposed a variation of the use of proceeds raised from its initial public offering (IPO) to partially finance the purchase consideration of RM11.6 million, where RM11.5 million would be satisfied through IPO proceeds and the balance RM100,000 via internally generated cash.
According to the group, the proposed acquisition and variation are subject to shareholders’ approval at an extraordinary general meeting to be convened.
Barring unforeseen circumstances, the acquisition is targeted to be completed by the fourth quarter of 2020.
At noon break, shares in Radiant Globaltech were one sen or 2.9% lower at 33.5 sen, valuing the group at RM175.94 million.