ACQUISITION OF SHARES IN GRAND-FLO SOLUTION BERHAD (“GRAND-FLO”)
- INTRODUCTION
The Board of Directors of HeiTech Padu Berhad (‘HeiTech” or “the Company”) wishes to announce that the Company has on 4th July 2011 acquire via open market for 1,000,000 units of ordinary shares (“Shares”) in Grand-Flo Solution Berhad (“Grand-Flo”) representing 0.63% of total issued and paid-up share capital of Grand-Flo for total cash consideration of RM429,900 (“Acquisition”).
Subsequent to the Company’s Acquisition of the Shares, the Company will hold an aggregate of 19.04%equity shareholding in Grand-Flo’s total issued and paid-up share capital.
2.details of The Acquisition
2.1Information of Grand-Flo
Grand-Flo is a public listed company listed on the ACE Market of Bursa Malaysia Securities Berhad with an authorized share capital of RM50,000,000, divided into 500,000,000 ordinary shares of 0.10 each (“Shares”). Its issued and paid-up share capital is RM15,945,282.50 comprising of 159,452,825 Shares.
Grand-Flospecializes in the provision of comprehensive Enterprise Data Collection and Collation System (EDCCS) Solutions (also known as Automated Identification System Solutions) to businesses in all industries.
None of the Directors and substantial shareholders of the Company or persons connected to them are related to Grand-Flo.
2.2Basis of Arriving At the Cash Consideration
The Cash Consideration was arrived at based on willing-buyer-willing seller basis. The Cash Consideration was funded entirely from internally generated funds of the Company.
3.RATIONALE FOR THE ACQUISITION
To provide a platform for HeiTech to venture into value added business of research and development (R&D) on the Enterprise Data Collection and Collation System (EDCCS) Solutions.
4.PROSPECTS
The Acquisition will enable HeiTech to diversify its business and also value add to its existing business of providing Total Information Technology (“IT”) Business Solution.
5.RISK FACTORS
Save for the normal business and global economic risk, the Board of Directors of HeiTech is not aware of any other risk factors which may arise as a result of the Acquisition.
6.Financial effects
In addition to the information disclosed on even date, we would like to inform that the Acquisition of Shares is not expected to have any material effect on the net assets per share, earnings per share, dividend policy, gearing, share capital and the substantial shareholders’ shareholdings of the Company for the financial year ending 31 December 2011.
7.APPROVAL REQUIRED
The Acquisition is not subject to the approval of the shareholders of the Company or any regulatory authorities.
8.DIRECTORS’ AND SUBSTANTIAL SHAREHOLDERS’ INTEREST
None of the Directors and/or substantial shareholders and/or any person connected to the Directors and/or substantial shareholders of HeiTech have any interest, either direct or indirect in the above Acquisition.
9.DIRECTOR’S STATEMENT
The Board of Directors of HeiTech having considered all aspects of the Acquisition is of the opinion that the Acquisition is in the best interest of the HeiTech Group.
10.EXPECTED TIME FRAME
The latest time frame for full settlement of the purchase price is 15 July 2011.
11.PERCENTAGE RATIO
The highest percentage ratio applicable to the Acquisition pursuant to Rule 10.02 of the Listing Requirements of Bursa Malaysia Securities Berhad for the main market is 0.22% based on the latest Audited Financial Statements of HeiTech as at 31 December 2010.
This announcement is dated 4 July 2011.