ICT product distributor Artroniq proposes to buy remaining stake in subsidiary

KUALA LUMPUR, April 12 (Bernama) -- Distributor of Information Communication Technology (ICT) products and related activities Artroniq Bhd has entered into a share sales agreement to acquire the remaining  245,000 ordinary shares in Artroniq Innovation Sdn Bhd (AISB) for RM14.7 million.

The proposed acquisition represents a 49 per cent stake in AISB and the vendors are Heng Chip Hian and Seniq Kinetic.

Artroniq said the proposed acquisition will be fully satisfied via an issuance and allotment of 26.07 million Artroniq shares at the issue price of RM0.5639 per Artroniq share, it said in a Bursa Malaysia filing.

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Artroniq said the proposed acquisition is an opportunity for the group to further improve its financial performance by consolidating the financial results of AISB.

The issuance of consideration shares as settlement will also enable the group to conserve its cash resources, channel it towards financing the group’s operations, and at the same time, align the interests of the vendors with those of the group as shareholders of the company, it said.

AISB was established last year as a 51 per cent-owned subsidiary to undertake the provision of point of sale (POS) solutions and distribution of POS hardware, peripherals and related services.

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-- BERNAMA