TradeMaestro

Exciting Times Ahead for PUC Berhad — A Rare Investment Opportunity?!

TradeMaestro
Publish date: Tue, 11 Jun 2024, 12:25 AM

If you’re looking for the next big investment opportunity, look no further than PUC Berhad. The company has just announced the acquisition of Alevate Capital and Alevate Solutions, two high-potential firms that promise to turbocharge PUC’s growth.

A Game-Changing Move

On June 10, 2024, PUC Berhad, a leading provider of digital marketing, e-commerce, and digital payment solutions, signed a Heads of Agreement (HOA) to acquire 100% equity interest in Alevate Capital and Alevate Solutions. These acquisitions are valued at RM200 million and come with a profit guarantee of up to RM32 million over the next two financial years. This move is set to enhance PUC’s market presence and capabilities in Martech, Fintech, and Entertainment Technology.

Why Does This Matter?

Both Alevate Capital and Alevate Solutions bring immense value to the table. Alevate Capital is a digital lender licensed by the Ministry of Housing and Local Government, providing much-needed credit services to SMEs with transparent and efficient processes. On the other hand, Alevate Solutions specialises in technology solutions, operations optimisation, and digital transformation, making them a perfect fit to bolster PUC’s existing service offerings.

With these acquisitions, PUC is poised to become a more integrated and comprehensive technology solutions provider, enhancing its ability to deliver seamless and holistic services to its diverse clientele.

The Financial Details

The first RM100 million of the purchase consideration will be settled through the issuance of 800 million PUC shares at RM0.125 per share. An additional RM7.5 million in cash will be payable once Alevate Capital and Alevate Solutions achieve a Profit Before Tax (PBT) of RM16 million from 1 July 2024 to 30 June 2025. The remaining balance is tied to a further profit guarantee milestone of RM32 million in PBT from 1 July 2024 to 30 June 2026.

The Leadership’s Vision

PUC’s Group Managing Director and CEO, Mr. Cheong Chia Chou, highlighted that these acquisitions are crucial in enhancing PUC’s technology capabilities and market reach. He believes that integrating Alevate’s expertise in Fintech will enable PUC to offer more comprehensive solutions, driving revenue growth and creating substantial shareholder value.

Mr. Tham Lih Chung, CEO of Alevate Capital and Alevate Solutions, expressed excitement about the partnership, noting that the combined strengths in Fintech and Martech will provide innovative solutions to clients, foster a robust technological ecosystem, and support Malaysia’s goal of cultivating more unicorns locally.

Looking Ahead

PUC Berhad is highly optimistic about the future. The integration of Alevate Capital and Alevate Solutions is expected to significantly boost revenue streams and create new business opportunities. PUC is also looking to expand its network of business partners and explore potential regional markets, aiming for sustainable and profitable growth.

Why Should You Invest?

Profit Guarantee. A RM32 million profit guarantee over two years ensures a secure return on investment.

Market Expansion. The acquisitions position PUC to tap into new markets and expand its service offerings.

Innovative Solutions. Combining Martech, Fintech, and Entertainment Technology will enhance PUC’s competitive edge.

Experienced Leadership. Strong leadership from both PUC and Alevate ensures a strategic and successful integration.

Conclusion

With its strategic acquisitions, promising profit guarantees, and visionary leadership, PUC Berhad is on the brink of significant growth. This is an opportunity you don’t want to miss. Invest in PUC today and be part of a transformative journey towards creating a leading integrated technology solutions provider.

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Be the first to like this. Showing 2 of 2 comments

OrlandoOilWeb3AI

Purchase the 2 Alevate companies at PE about 17x cheap or not??

1 week ago

Dkk08

H9e.. but from the price movement today, mkt participants doesn't seems quite like this deal

1 week ago

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