N2N proposes to buy AFE Solutions for RM86mil

PETALING JAYA: N2N Connect Bhd is proposing the acquisition of Hong Kong-based financial data and trading solutions provider AFE Solutions Ltd for a cash consideration of US$20.6mil (RM86.3mil) to expand the company’s regional presence.

The company said in a filing with Bursa Malaysia that a conditional sale and purchase agreement with Reuters International Holding SARL and Systex Capital Group Inc for the proposed acquisition of the company has been entered into.

AFE has a regional presence in Hong Kong, Macau and Vietnam.

“The core business of N2N is in the provision of trading and analytics solutions mainly to local stock broking firms and banks.

“Through the acquisition of AFE, a financial data and trading solutions provider with regional presence, the company is able to leverage on AFE’s expertise in information solutions as well as its customer base of brokerage firms and international and regional banks to complement its existing business and expand into new markets to grow its presence in the region which is in line with the company’s expansion plans,” N2N said.

The company said the purchase would be financed via internally generated funds and/or bank borrowings.

Upon completion of the proposed acquisition - expected in the first half of next year - AFE would become a wholly-owned subsidiary of N2N, enabling the company to consolidate the financials of AFE.

N2N said the acquisition will enhance the future earnings potential of the company and ultimately increase the shareholder value.

“In addition, the proposed acquisition is also expected to deliver synergies through operational and cost efficiencies which in turn is expected to contribute positively to the future earnings and cash flows of the enlarged N2N group,” it added.