TASCO Berhad (KLSE:TASCO) entered into a sale and purchase agreement to acquire Gold Cold Transport Sdn. Bhd. from Chang Kok Fai, Chan Sun Cheong and 4 other individuals for approximately MYR 190 million on January 9, 2017. Under the terms, the buyer will acquire 2 million shares and as of January 9, 2017, paid an initial deposit of MYR 3.7 million, will pay MYR 14.9 million upon completion of due diligence and the balance of MYR 167.5 million upon completion of the acquisition. The final balance payment of MYR 167.5 million is subject to adjustment. However, the purchase consideration will not be more than MYR 188 million after the final adjustment. As of May 9, 2017, TASCO Berhad announced that the consideration for the transaction will be MYR 185.62 million after the adjustment. The initial deposit and a portion of balance deposit was paid via internally generated funds and the balance amount will be funded via borrowings and/or via advances from Yusen Logistics Co Ltd., the holding company of TASCO Berhad. In case the transaction is terminated by the seller before the payment of MYR 14.9 million, the sellers will refund the initial deposit and pay an amount equal to the initial deposit as agreed liquidated damages. In case the transaction is terminated by the seller after the payment of MYR 14.9 million but before all the conditions are fulfilled, the sellers will refund the amount and pay an amount equal to 50% of the deposit as agreed liquidated damages. In case the transaction is terminated after all the conditions are fulfilled but before completion, the sellers will refund the amount and pay an equal amount of the deposit as agreed liquidated damages. In case the transaction is terminated by the buyer before the payment of MYR 14.9 million, the sellers will retain the initial deposit. In case the transaction is terminated by the buyer after the payment of MYR 14.9 million but before all the conditions are fulfilled, the sellers will retain an amount equal to 50% of the deposit as the liquidated damages and refund the remaining to the buyer. In case the transaction is terminated by the buyer after all the conditions are fulfilled but before completion, the sellers will retain the entire deposit as agreed liquidated damages. Concurrently, the sellers gave the right to the buyer to acquire Hypercold Logistics Sdn Bhd and Platinum Coldchain Sdn Bhd, exercisable within 1 year from the completion date of the transaction. As of November 30, 2016, Gold Cold Transport's reported revenue of MYR 77.2 million, profit after tax of MYR 8.6 million, total assets of MYR 123.3 million and total equity of MYR 46.7 million. The transaction is subject to the completion of due diligence, approval of the shareholders of TASCO Berhad, approval from the TASCO Group's banks and financial institutions and others. As of March 30, 2017, Chang Kok Fai, Chan Sun Cheong confirming that the result of of due diligence is satisfactory and TASCO made payment of MYR 14.9 million upon completion of due diligence. As on June 29, 2017, the shareholders of TASCO Berhad approved the transaction. The transaction is expected to be completed in the second quarter of calendar year 2017, and is expected to contribute positively to the earnings and EPS of TASCO Group for the financial year ending March 31, 2018. As of June 6, 2017, TASCO Berhad and Chang Kok Fai, Chan Sun Cheong mutually agreed to an extension of time for a further period of 2 months from June 8, 2017, to August 8, 2017. The proposed transaction will not have any effect on TASCO Berhad's share capital and the shareholdings of substantial shareholders. RHB Investment Bank Berhad acted as financial advisor for TASCO Berhad. Lee Lam Huat of L.H. Lee & Co acted as accountant for Gold Cold Transport.