Radiant Globaltech to acquire 80% stake in Rymnet for RM52.5mil

KUALA LUMPUR: Radiant Globaltech Bhd (RGTech) has inked a deal to acquire 80,000 shares, representing an 80% equity interest, in Rymnet Solutions Sdn Bhd from its founder and CEO, Un Sze Hau, for RM52.5mil.

In a filing with Bursa Malaysia, the group said the purchase consideration shall be satisfied via a combination of RM42.5mil cash and the allotment of 30.3 million new RGTech shares at an issue price of 33 sen each.

According to RGTech, the purchase consideration represents a price-to-earnings multiple of 12.59 times, based on the latest audited profit after tax of Rymnet of about RM4.17mil in the financial year ended Dec 31, 2023.

RGTech said the proposed acquisition is conditional upon Rymnet's acquisition of the entire equity interest in Rymnet Solutions Pte Ltd (Rymnet SGP), which would strategically align Rymnet's corporate structure and ownership.

Under the terms of the sales and purchase agreement, Rymnet guarantees that it and its wholly-owned subsidiary, Rymnet SGP, will achieve an accumulated profit guarantee of RM11mil over a period of two years.

"The aforesaid guarantee is provided to RGTECH in proportion to their respective shareholdings in Rymnet and is contingent upon the completion of the Pre-Acquisition Restructuring," said RGTech.

RGTech said the proposed acquisition will enable it to broaden its range of solutions and enhance its market presence in the IT sector, which is in line with its long-term commitment to becoming a leading integrated technology solutions provider in the region.

"The proposed acquisition will enable RGTECH to expand its current IT solution offerings given that Rymnet is an established IT solutions provider, primarily focusing on the digitalisation of HR management and operations," it added.