KUALA LUMPUR (June 10): PUC Bhd (KL:PUC) said it plans to acquire digital money lender Alevate Capital Sdn Bhd and digital transformation solution provider Alevate Solutions Sdn Bhd for a total of RM200 million.

In a statement on Monday, the digital payment solutions provider said it has signed a heads of agreement with Eatcosys Sdn Bhd and Tham Lih Chung for the acquisitions.

The group said the acquisitions would be "adding a fintech (financial technology) vertical that will complement the existing marketing technology and entertainment technology sectors".

“This integration will allow the three divisions to create synergies and enhance PUC’s overall service offerings and operational efficiencies, with a profit guarantee of up to RM32 million over the next two financial years,” added the ACE Market-listed group.

PUC said that under the heads of agreement, the group will settle the first RM100 million through the issuance of 800 million shares priced at 12.5 sen per share.

Once Alevate Capital and Alevate Solutions achieve a profit before taxation (PBT) of RM16 million from July 1, 2024 to June 30, 2025, PUC will pay an additional RM7.5 million in cash to the vendors.

“The remaining balance will be subject to achieving a further profit guarantee milestone of RM32.0 million in PBT from July 1, 2024 to June 30, 2026,” it said.

For the 15-month financial period ended March 31, 2024, PUC reported a net loss of RM24.67 million due to higher expenses incurred from corporate exercises. Revenue stood at RM25.52 million.

There are no comparative figures as the group changed its financial year end from Dec 31, 2023 to June 30, 2024, for internal restructuring.

PUC shares closed unchanged at six sen, valuing the group at RM148.07 million.