Sino Hua-An buys Hong Kong-based IoT firm for RM150m
03 Jul 2020
Sino Hua-An International Bhd is acquiring Hong Kong’s internet of things (IoT) firm HK Aerospace for US$35 million (RM150.06 million) to strengthen the former’s digital transformation and digital ecosystem solutions.
The group has inked share subscription and share purchase agreements with Dr Wan Muhamad Hasni Wan Sulaiman, Nong You Hua and Satriya Suetoh for the acquisition, it said in a filing with Bursa Malaysia today.
Upon completion of the agreements, HK Aerospace will become a wholly-owned subsidiary of Sino Hua-An. The acquisition comes with a minimum profit after tax guarantee from the vendors US$3 million for the first financial year of HK Aerospace.
“The purchase consideration will be fully satisfied via cash which may be generated either from internall-generated funds, external borrowings or some form of fund raising exercise, if deemed necessary,” the group added.
HK Aerospace is a holding company for IoT and manufacturing operations in China, which holds the intellectual property and global marketing rights of the supercapacitors produced.
It will also be the entity to undertake further research and development in international collaborations related to the technology, according to Sino Hua-An.
“This acquisition will further strengthen the group’s market position as a digital transformation enabler, as it will complete the final puzzle for Sino Hua-An to transform itself into a technology company in the digital transformation space,” it said.
On Bursa Malaysia today, Sino Hua-An’s share price closed unchanged at nine sen with 2.94 million shares exchanging hands. This valued the company at RM102.81 million.
Source: The Edge Markets