KUALA LUMPUR: PUC Bhd
has entered into a heads of agreement for the purchase of the entire equity stakes in Alevate Capital Sdn Bhd and Alevate Solutions Sdn Bhd for RM200mil to be satisfied in cash and shares.
The vendors of the companies are Eatcosys Sdn Bhd, a wholly-owned subsidiary of Incite Innovation Sdn Bhd, and Tham Lih Chung.
Under the terms of the agreement, PUC will settle the first RM100mil of the purchase consideration through the issuance of 800 million PUC shares at 12.5 sen a share.
An additional RM7.5mil in cash will be payable once Alevate Capital and Alevate Solutions achieve a pre-tax profit of RM16mil from July 1, 2024, to June 30, 2025.
The remaining balance will be subject to achieving a further profit guarantee milestone of RM32mil in pre-tax profit from July 1, 2024, to June 30, 2026.
According to a statement, Alevate Capital is a digital lender licensed by the Ministry of Housing and Local Government (KPKT) and provides money lending services under the Moneylenders Act 1951.
Meanwhile, Alevate Solutions is a technology solutions, operations optimisation, and digital transformation solutions provider.
PUC said the acquisitions are set to propel its capabilities by adding a fintech vertical to complement its existing marketing technology and entertainment technology sectors.
PUC group managing director and CEO Cheong Chia Chou said the acquisitions represent a significant step forward in its strategy to enhance its technology capabilities and market presence.
"By integrating Alevate’s expertise in fintech, we are poised to deliver comprehensive solutions that cater to the evolving needs for our end users.
"The profit guarantee and expected revenue growth underscore our commitment to creating shareholder value," he added.
