Thursday 30 May 2024
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KUALA LUMPUR (Aug 16): Payment solutions provider Revenue Group Bhd through its wholly-owned subsidiary Revenue Harvest Sdn Bhd (RHSB) is acquiring a 25% stake in VSure Tech Sdn Bhd, which is in the business of digitalising insurance platforms, for RM12 million.

RHSB has entered into a share sale and purchase agreement with a group of VSure Tech shareholders to buy 2,550 ordinary shares, representing approximately 2.5% of the latter’s issued share capital, for RM1.2 million cash.

The share vendors are Wong Kok Hoe, Ho Kin Ming, Tan Kah Seong, Lee Chuey Wei, Lim Woei Jein, Jong Jar Shin, Sanjay Vivekanandan, Jonathan Leigh Joseph, Wee Hsien Paul, Koh Yang Mun, Kevin Eu Kee Yam, Donna Lim, Loh Tsuey Fah and Yong Kok Man, according to a bourse filing.

RHSB also signed a share subscription agreement with VSure Tech relating to the subscription of 30,614 new ordinary shares, representing approximately 23% of the latter’s enlarged issued share capital, for RM10.8 million cash.

“Upon completion of the proposed transactions, VSure Tech will become a 25%-owned associate company of RHSB and indirect 25% associate company of Revenue Group,” said the company.

VSure Tech is principally engaged in the business of digitalised insurance platforms, provision of management and consultancy services over the Internet and insurance technology.

Revenue Group said the total consideration of RM12 million for the sale shares and the subscription shares were arrived at on a willing-buyer willing-seller basis and will be financed via internally generated funds.

“The proposed transactions represent an opportunity for Revenue Group to participate in the equity interest of VSure Tech via RHSB which will facilitate Revenue Group to further expand and develop a more robust Business-to-Business-to-Consumer (B2B2C) environment by providing innovative products and services to its customers, such as on-demand insurance, catering to the special needs of individual and businesses, which will then further complement Revenue Group’s core business, i.e. electronic transaction processing,” said the group.

It added the transactions are not expected to have any material effect on the earnings per share, net assets per share, gearing, share capital and the substantial shareholders’ shareholding of the group for the financial year ending June 30, 2022.

Barring any unforeseen circumstances, the transactions, it said, are expected to be completed by the third quarter of 2021.

Revenue Group’s share price gained five sen or 2.63% to RM1.95, valuing the group at RM895.9 million.

Edited ByKathy Fong
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