KUALA LUMPUR (Aug 7): Ramssol Group Bhd (KL:RAMSSOL), a people solutions and technology licensing provider, has aborted its plan to dispose of a 40% stake in its wholly owned subsidiary Rider Gate Sdn Bhd to Nasdaq-listed technology firm SAGTEC Global Ltd.
The proposed RM25 million deal was called off after SAGTEC failed to secure approval from its board of directors to proceed with the acquisition.
"Given SAGTEC's failure to obtain the approval of its board, SAGTEC has purported to terminate the proposed share acquisition as SAGTEC is unable to satisfy the condition precedent of the share sale agreement (SSA)," Ramssol said in a filing with Bursa Malaysia on Thursday.
SAGTEC specialises in point-of-sale systems, software development, and data management services.
Ramssol, meanwhile, said it is currently seeking legal advice in relation to SAGTEC’s termination of the SSA.
Ramssol had initially announced the proposed stake sale in July, noting that the move would enable it to leverage SAGTEC’s capital and software development expertise to accelerate the commercialisation of Rider Gate. The transaction would also have allowed Ramssol to reallocate resources toward more immediate, earnings-accretive operations.
Post-acquisition, Ramssol would have retained a 60% stake in Rider Gate.
As part of the agreement, Ramssol had provided SAGTEC with a profit guarantee of at least US$1 million (approximately RM4.25 million) for Rider Gate’s first full financial year following the completion of the deal.
The RM25 million consideration, equivalent to approximately US$5.8 million, implied a valuation of RM62.5 million for Rider Gate and was to be settled in SAGTEC shares. Ramssol had anticipated a disposal gain of RM25.14 million.
Launched in January 2025, Rider Gate offers a digital ecosystem focused on the trading of used motorcycles. Its services include financing, insurance, inspections, accessories, and repair.
The platform has already onboarded over 25,000 users and more than 300 motorcycle dealers. It aims to expand its network to 1,000 outlets across Peninsular Malaysia within its first year of operations.
At the midday trading break on Thursday, Ramssol shares were down 0.5 sen or 0.53% to 94.5 sen, valuing the company at RM354.9 million.