KUALA LUMPUR (July 3): Information technology company Zen Tech International Bhd (KL:ZENTECH) said it is seeking to acquire a 30% stake in shariah-compliant payment gateway provider Souqa Fintech Sdn Bhd.
The company on Thursday signed a non-binding letter of intent with Souqa to initiate negotiation on the proposed acquisition, said Zen Tech in a bourse filing.
Another company, HeiTech Padu Bhd (KL:HTPADU), had previously terminated its share subscription agreement to acquire a 30% stake in Souqa for RM16.17 million, less than two weeks after entering into the deal.
Zen Tech said its proposed acquisition of the stake in Souqa is driven by its intention to expand its business footprint into the financial technology (fintech) industry. It added that the move is aimed at tapping into the Islamic-based e-commerce ecosystem, signalling its entry into shariah-compliant digital financial services.
Zen Tech did not disclose the valuation or structure of the share issuance but said further details will be announced upon execution of a definitive agreement.
Souqa’s current major shareholders include Asad Capital Sdn Bhd (58.03%) and Patrick Thevarajah (30.02%). Notably, Crescent Capital Sdn Bhd, controlled by businessman Mirzan Mahathir, was previously among Souqa’s shareholders.
Share swap involving Alpha and Hiasset
In another filing on Thursday, Zen Tech said it will swap part of its stake in Alpha Fintech Sdn Bhd that was just acquired in April 2024 for equity in Hiasset Sdn Bhd, following Alpha’s failure to meet a profit guarantee.
Zen Tech, formerly known as Inix Technologies Holdings Bhd, said it will transfer 40% of its 70% stake in Alpha to Lee Kang Aik in exchange for Lee’s entire 40% interest in Hiasset.
Zen Tech said Hiasset was chosen as the counterparty in the share swap "as part of a negotiated settlement" to address the impact of Alpha’s underperformance.
Alpha is involved in the sale of credit card terminals, prepaid Visa and Mastercard products, and other IT-related services. Zen Tech had acquired its 70% stake in April 2024 for RM10 million from Koh Chee Siong, who remains Alpha’s director and holds a 26.83% stake.
The acquisition was conditional upon Alpha achieving a RM2.5 million profit guarantee for the financial year ended June 30, 2025. Zen Tech’s earlier filing noted that should Alpha fail to meet the target or incur losses, Koh is required to compensate the company.
However, no updates on Alpha’s current financial performance were provided.
"The proposed share swap not only mitigates the commercial risk from Alpha’s underperformance but also enables the group to strategically reposition its resources through Hiasset for greater operational efficiency and long-term value creation," Zen Tech said.
Shares in Zen Tech closed unchanged at one sen on Thursday, giving the company a market capitalisation of RM31.37 million.