Zen Tech International Berhad (KLSE:ZENTECH) entered into a share sale agreement to acquire 70% stake in Alpha Fintech Sdn. Bhd. from Koh Chee Siong for MYR 10 million on April 2, 2024.

Zen Tech will acquire 4.165 million shares in Alpha Fintech. Upon completion of the Acquisition, Alpha will become a 70%-owned subsidiary of Zen Tech. The consideration will be funded via the internally generated funds and/or bank borrowings.

Alpha Fintech reported net assets of MYR 9 million for the 18-month financial period ended December 31, 2023. The transaction is conditional upon satisfactory legal and financial due diligence findings, completion of the ordinary share subscription, completion of the redeemable preference shares redemption by Alpha and the procurement by the Parties such other waivers, consents or approvals as may be required (or deemed necessary) from any third party or governmental, regulatory body or competent authority having jurisdiction over any part of the transaction. Pursuant to the terms and conditions of the share sale agreement, Koh Chee Siong will utilize MYR 4.35 million from the proceeds received upon execution of the SSA to subscribe for 4.35 new ordinary shares in Alpha Fintech.

The transaction is expected to close in the second quarter of 2024.