KUALA LUMPUR (Nov 12): Stockbroker M&A Equity Holdings Bhd (KL:M&A) plans to fork out RM2.03 million cash to acquire a 60% stake in Klever Stock Sdn Bhd, a local stock market data analytics firm.

M&A Equity inked a conditional share subscription agreement with Klever Stock for the deal, according to a bourse filing on Wednesday. Klever Stock is wholly owned by Lau Pei Ling. Post-stake acquisition, Lau will retain a 40% stake via K Production Sdn Bhd.

The stake buy, to be funded with internal funds, is part of M&A Equity’s strategy to become a “full-fledged financial services provider”, it noted.  

The company said Klever Stock’s business will complement its existing business, comprising stockbroking, as well as corporate finance and advisory services.

Klever Stock is principally engaged in the business of providing infrastructure for hosting data, data processing services and related activities, according to M&A Equity.

“The board believes that the future prospect of M&A Equity is expected to be bright as the group continues to expand on its financial service business, as well as intensifying the clients’ corporate coverage activities to secure deal originating opportunities, embarking on more corporate advisory projects and pursuing growth in the stock brokerage and margin financing business,” M&A Equity added.

A shareholders' agreement was also inked between M&A Equity and K Production to regulate their shareholding relationship and governance of Klever Stock’s management and operation.

The stake purchase is expected to be completed by the end of this month, M&A Equity noted.

Shares in M&A Equity ended unchanged at 27 sen on Wednesday, valuing the company at RM531.41 million.