Just yesterday, PUC announced a sale and purchase agreement by Presto Technology Sdn Bhd to G Solution Tech Sdn Bhd, which has raised the eyebrows of many investors. Some are confused by the agreement, with many even thinking that PUC is selling its golden egg, Presto Mall, all at once.

However, the agreement is actually about the disposal of software and intellectual properties of the company for a total cash consideration of RM22.0 million, while PUC gears up for its next expansion plan.

As shown in the chart above, this disposal is solely about the software and IP rights of the company’s legacy assets. It does not involve selling Presto Technology itself, which still owns Presto Mall.

Moreover, PUC has just signed a game-changing agreement to acquire two companies, namely Alevate Capital Sdn Bhd and Alevate Solutions Sdn Bhd, for a total sum of RM200.0 million. These two companies are set to provide a profit guarantee of RM16.0 million per financial year to PUC, on a minimum basis.

Hint: This acquisition is mostly via share issuance, with the remaining sum financed via a private placement by the company.

For your information, Alevate Capital is a KPKT-regulated digital lender providing Malaysian SMEs with fast access to microloans and business funding. Alevate Solutions, backed by Incite Innovations Sdn Bhd, is a technology enabler that helps SMEs by offering tailored digital transformation solutions and corporate planning services.

These two companies, combined with additional funding from the disposal of assets (again, not the company) by PUC, are set to propel the company forward.

I hope this article clarifies what lies ahead for PUC!