Shin Yang Group Berhad (KLSE:SYGROUP) agreed to acquire 60% stake in Boulevard Motor, Boulevard Motor (Sabah) and Boulevard Motor (Labuan) from Best Megalink Sdn Bhd, Melana Sinar Sdn Bhd and Kemena Sinar Sdn. Bhd. for MYR on July 11, 2024.

Shin Yang Group Berhad will pay an earnout payment in the form of equity shares. As part of consideration, MYR 70.17 million is paid in cash while the remaining is paid via issue of equity shares. The transaction will be financed through equity investment of MYR 70.17 million.

For the period ending December 31, 2023, Boulevard Motor, Boulevard Motor (Sabah) and Boulevard Motor (Labuan) reported total revenue of MYR 1.06 billion and net loss of MYR 20.78 million. The transaction is subject to legal and financial due diligence, Board and shareholder approval of Shin Yang Group Berhad, Best Megalink Sdn Bhd, Melana Sinar Sdn Bhd, and Kemena Sinar Sdn. Bhd.

The deal is expected to be completed by the third quarter of 2024. AmInvestment Bank Berhad acted as financial advisor for Shin Yang Group Berhad.