Kronologi's share price rises 6% on proposed Sandz acquisition

KUALA LUMPUR: Kronologi Asia Bhd is seeing investor interest on plans to acquire IT infrastructure and services company Sandz Solutions (Singapore) Pte Ltd for RM75mil.

At 9.21am, the counter was up 3.5 sen or 6.14% to 60.5 sen on the back of 2.5 million shares traded.

According to Kronologi's filing with Bursa Malaysia yesterday, the deal will involve the issuance of up to 123.57 million new shares in Kronologi at an issue price of 56.65 sen a share and a cash payment of RM5mil.

Upon successful completion of the deal, the current owner of Sandz Solutions, Desert Streams Investment Ltd, will become the largest stakeholder in Kronologi with a 23.65% stake.

The current largest shareholder, Tan Jeck Min's stake in the group will be diluted from 13.82% to 10.55%.