Monday 17 Jun 2024
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KUALA LUMPUR (Sept 20): Human Resources solutions provider Ramssol Group Bhd is buying 10% stake in Elmu Education Group Sdn Bhd for RM1.5 million cash, by subscribing for 16,000 new ordinary shares and 1.48 million redeemable convertible preference shares (RCPS).

Elmu is currently 70%-owned by AB Management & Consultancy Services Sdn Bhd and 30%-owned by Datin Noraini Aripin.

The company provides education, training, and consultancy programmes related to law enforcement, including anti-corruption training for business.

Subsequent to the acquisition, shareholdings of AB Management will be diluted to 60% while Noraini’s stake will stay at 30%.

Ramssol will subscribe for 16,000 new shares in Elmu at RM1 apiece, out of 60,000 new shares to be issued by the company. The remainder will be subscribed by both AB Management (26,000 shares) and Noraini (18,000 shares).

The RCPS, which is also priced at RM1 apiece, does not come with a fixed dividend rate, but Ramssol has the right to require Elmu to redeem all or part of them at RM2 per RCPS after three years.

Should Elmu undertake further new issuance of ordinary shares in future and resulting Ramssol’s shareholding to fall below 10%, the latter could exercise its rights to convert all or part of the RCPS into ordinary shares to maintain its stake at 10% level.

According to Ramssol, the subscription will enable the company to enter the educational sector, which aligns with the company's strategy. By leveraging EEG’s existing infrastructure, expertise, and industry connections, Ramssol said it can expedite market entry and reduce operational challenges.

The subscription will be funded by internally generated funds, it added.  

Shares in Ramssol closed unchanged at 47 sen, giving the group a market capitalisation of RM115.32 million.
 

Edited ByAdam Aziz
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