Medical Spring Sdn. Bhd., Elogistic Sdn. Bhd., Envy Venture Sdn. Bhd., E Metall Systems Sdn Bhd agreed to acquire 51% stake in Lienteh Technology Sdn. Bhd. from Eonmetall Group Berhad (KLSE:EMETALL) for MYR 35.7 million on August 8, 2022. The consideration shall be satisfied in cash by the completion date. For year ending December 31, 2021, reported profit after tax of MYR 0.251 million and revenues of MYR 37.86 million. The transaction is subject to approval by non-interested shareholders of Eonmetall Group at the extraordinary general meeting to be convened for the transaction, approval or consent of the financiers/creditors and execution of the deeds of rescission for the rescission of the profit guarantee and call option and for the rescission of the stakeholder agreement and is expected to be completed in the 4th quarter of 2022. The proceeds are intended to be used by Eonmetall Group for expansion of manufacturing facilities, repayment of borrowings, as working capital and meeting expenses related to the sale. Sierac Corporate Advisers Sdn Bhd and Kenanga Investment Bank Berhad acted as financial advisors for Eonmetall Group.
As on November 4, 2022, Kenanga IB wishes to announce that the Company had agreed to the Purchasers' request for the Extension of Time for a period of 3 months, commencing from 5 November 2022 to 4 February 2023 has been made.