Connectcounty Holdings Bhd (KLSE:CONNECT) entered into a sales and purchase agreement to acquire 51% stake in MyGenBizz Bhd from Tan See Kuy for MYR 1 million in cash on January 20, 2014. Under the terms of the transaction, MYR 0.2 million is paid on signing of agreement and the remaining will be paid on completion. Post completion, Tan See Kuy will hold 49% stake in MyGenBizz Bhd and Connectcounty Holdings will hold 51% stake. Connectcounty Holdings Bhd will fund the transaction through internally generated funds worth MYR 0.5 million and borrowings worth MYR 0.5 million. In case the transaction is terminated by Tan See Kuy, Tan See Kuy will pay MYR 0.2 million to Connectcounty along with the deposit. If Connectcounty terminates the transaction, the vendor will forfeit the deposit for the transaction.

The transaction is subject to the results of the legal and financial due diligence, approval by Board of Connectcounty and the approvals, consents, authorisations, permits or waivers of any other authorities and any other third parties. The transaction is expected to be completed in two weeks. The acquisition will not have any effect on the issued and paid-up capital, net assets and gearing of Connectcounty and is expected to generate positive earning for the year ended December 31, 2014.

Connectcounty Holdings Bhd (KLSE:CONNECT) completed the acquisition of 51% stake in MyGenBizz Bhd from Tan See Kuy on January 24, 2014.