CEO Morning Brief

RGTech Acquires Remaining 20% Stake in Subsidiary to Strengthen Its Tech Business

Publish date: Wed, 03 May 2023, 08:48 AM
0 15,863
TheEdge CEO Morning Brief
RGTech acquires remaining 20% stake in subsidiary to strengthen its tech business

KUALA LUMPUR (May 2): Integrated technology solutions provider Radiant Globaltech Bhd (RGTech) is acquiring the remaining 20% stake in a subsidiary engaged in the provision of total electronic data capture and collation solutions for RM12.61 million.

RGTech is purchasing the stake in 80%-owned Grand-Flo Spritvest Sdn Bhd (GFS), formerly known as Spritvest Sdn Bhd, from investment holding company Jejaka 7 Capital Sdn Bhd, said the group in a bourse filing.

The acquisition, it said, will provide the group full flexibility to drive the future strategic direction and growth of GFS, thereby improving the efficiency, competitiveness and productivity of the business.

The acquisition is deemed to be a related party transaction as RGTech group chief executive officer (CEO) Cheng Ping Liong is also the CEO of GFS, and a major shareholder and director of Jejaka 7 Capital.

Cheng holds a 55% direct stake in Jejaka 7 Capital, about 1.81% direct equity interest in RGTech, and a 20% indirect interest in GFS.

RGTech and its subsidiaries’ cash and cash equivalents stood at RM41.31 million based on the latest audited financial statements of the group for the financial year ended Dec 31, 2022 (FY2022).

The group said the acquisition, which is expected to be completed in the second half of this year, is expected to improve the earnings of the group for FY2023 and beyond.

RGTech's share price closed one sen or 2.74% lower at 35.5 sen on Tuesday (May 2), valuing the group at RM183.93 million.

Source: TheEdge - 3 May 2023

Related Stocks
Market Buzz
Be the first to like this. Showing 0 of 0 comments

Post a Comment