Central Global to acquire 70% stake in RYRT International

KUALA LUMPUR: Central Global Bhd subsidiary CIC Construction Sdn Bhd has entered into a sale and purchase agreement for the acquisition of 1.4 million shares or 70% stake in RYRT International Sdn Bhd for RM30.1mil in equity.

In a bourse filing, Central Global said the stake acquisition from RYRT Holdings Sdn Bhd will be wholly satisfied via the issuance of 28.84 million new shares in Central Global at an issue price of RM1.04 per consideration share.

The purchase comes with a profit guarantee from the vendor as well as its two shareholders, Soo Yu Chai and Lee Chee Vui, that the aggregate audited profit after tax of RYRT International shall not be less than RM43mil for a period of two financial years ending Aug 31, 2022, and Aug 31, 2023.

In the event of lockdowns by the authorities resulting in a suspension in RYRT's operations for more than two weeks, the aggregate audited profit after tax of the company for the guarantee period shall be not less than RM34.4mil.

The profit guarantee period shall also be extended by another year with not more than RM8.6mil from the additional year going towards calculating the profit guarantee.

"The Proposed Acquisition represents an opportunity for the Group to further enhance its presence in the construction industry in Sabah for its construction activities such as engineering, procurement and construction (EPC) and engineering, procurement, construction and commissioning (EPCC).

"The Proposed Acquisition will also enable the Group to consolidate RYRT International’s financial results and is in line with the Group’s plan to achieve a sustainable revenue stream and profits moving forward after taking into consideration the existing construction projects secured by RYRT International," said Central Global.
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