KUALA LUMPUR: Property developer Tiger Synergy Bhd has signed into a memorandum of understanding (MoU) to fully acquire BPE Synergy Engineering Sdn Bhd, via a share swap totalling RM16 million of purchase consideration.
The share swap is expected to be completed within the first half of 2016 and entails a profit guarantee of at least RM2 million per financial year for the next three financial years.
BPE Synergy is a specialist in printed circuit board and mechanical design and through its acquisition of Premier Circuit Green Technology in 2014, now has access to a majority factories in Malaysia.
"Going forward, we intend to offer value-added properties with smart technology by capitalising on the competency and experiences of BPE," said Tiger Synergy chairman Datuk William Tan Wei Lian during the signing.
"We believe this business diversification would contribute positively to the company's future earnings and improve the financial position via additional revenue and earnings contribution from the semiconductor related activities."
Based on the MoU, 50 per cent the consideration shares shall subject to a moratorium period of three years from the completion of the share swap, while the balance 50 per cent shall be a free tradeable without any moratorium.