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eBworx gets takeover offer from Hitachi


PETALING JAYA: ACE Market-listed eBworx Bhd has received a potential takeover offer from Hitachi Ltd, at an indicative 90 sen per share.

That means a complete takeover of eBworx could cost Hitachi RM184.2mil.

eBworx told Bursa Malaysia that it had received a letter on March 1 from Hitachi, regarding the proposal.

Hitachi or its affiliate may propose to make a conditional voluntary general offer to eBworx shareholders, with a minimum level of acceptances of 85%.

eBworx said the proposed offer was subject to conditions including completion of due diligence by Hitachi and the retention of certain key personnel.

The board of eBworx has agreed for Hitachi to proceed with the due diligence. The latter is expected to make an offer in April.

The eBworx group is a regional financial solutions specialist that provides digital commerce solutions to the financial services industry. It provides solutions for credit management, delivery channel (cash management, Internet banking and branch delivery) and trade finance. Its main revenue stream comes from systems maintenance and enhancement services.

StarBizWeek recently reported that eBworx was targeting to secure contracts valued at about RM80mil.

“We brought over RM70mil worth of jobs from last year that would only be translated into revenue this year,” said group chief executive officer Tan Suan Fong recently.

In the financial year ended Dec 31, 2011, the company's net profit jumped 148% year-on-year to RM11.8mil in 2011, from RM4.8mil a year earlier, and this was attributed to new projects secured as well as enhancement project orders by eBworx's clients to enhance and expand their banking systems.

The major shareholders of eBworx are CSE-Infotech Ltd (29.2%), OSK Capital Partners Sdn Bhd (25.4%) and Tan (16.1%).

The share price of eBworx had closed at 78.5 sen on Thursday.

Trade in eBworx shares was suspended yesterday for the announcement of the proposed offer.

   

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