KUALA LUMPUR (Aug 1): Singapore-based firms Jostar Investment VCC and Mark Investment Group VCC have signed share subscription agreements with Nova MSC Bhd (KL:NOVAMSC) for investments in two of the company’s subsidiaries totalling RM81.1 million.
Jostar and Mark Investment will invest a total of RM34.6 million in Nova MSC’s 60%-owned subsidiary, Dex-Lab Pte Ltd, and another RM46.5 million in EyRIS Pte Ltd, which is 42% indirectly owned by Nova MSC, the company said in an exchange filing.
The deal would provide funding at the subsidiary level, which helps distribute the financial responsibilities of their operations, Nova MSC said. This will reduce the overall risk for the group’s shareholders while also providing external validation of the subsidiaries' value and potential, it said.
Dex-Lab makes the so-called social robots, while EyRIS develops artificial intelligence for automated image analysis for eye diseases, according to their websites.
The share subscription agreements follow non-binding term sheets signed earlier with Jostar in April and with Mark Investment in May.
Upon completion of the agreements within 60 days from execution, Jostar and MIG will each hold a 12.5% stake in Dex-Lab and a 10% stake in EyRIS. Meanwhile, Nova MSC will hold a 45% stake in Dex-Lab and a 33.59% stake in EyRIS.
The share subscription agreements are still subject to approvals and due diligence, Nova MSC added.
Nova MSC’s largest shareholder is Ooi Keng Thye with a 14.79% stake, followed by Loh Guan Huat Sunny via Stone Villa Ltd with a 6.08% stake, according to the group’s annual report.
Shares of Nova MSC were trading up half a sen or 2.38% at 21.5 sen as of 3.14pm on Thursday, giving it a market value of RM285.09 million.