Kuala Lumpur-based payment solutions provider GHL Systems Bhd has downsized its proposed acquisition of equity interest in Vietnam’s MPOS Global to 6.1 per cent instead of 31.16 per cent planned earlier citing non-fulfillment of certain conditions, it said in a filing on Bursa Malaysia today.
GHL also cited regulatory requirements, MPOS Global’s capital needs and business environment in Vietnam as other reasons for truncating the size of the transaction.
“GHL and MPOS have on 18 June, 2018 executed a share subscription form for GHL to subscribe for 326,797 new ordinary shares of MPOS Global (representing 6.1 per cent of the total paid-up shares of MPOS Global) at the price of $1.53 per MPOS Global share on the same basis as the revised share subscription agreement,” the filing noted.
“The 6.1 per cent equity interest in MPOS had been settled via the $500,000 deposit paid for the proposed acquisition,” said GHL.
The closing date for MPOS Tehcnology JSC has been extended to December 14, 2018. GHL declared the proposed acquisition is now completed with the firm owning 6.1 per cent stake in MPOS Global.
Last November, GHL had agreed to invest more than $3.3 million into MPOS Global, as part of its efforts to strengthen its presence and gain immediate access in Vietnam.
Earlier this month, it raised $21.2 million from UK-based private equity firm Apis Partners by way of 65 million newly issued shares subscription issued at RM1.30 per share. Last year, another PE firm Actis bought a 44.37 per cent stake in GHL for $67.25 million from previous investor Creador and GHL executive vice-chairman Simon Loh.
By Ka Kay Lum
Source: dealstreetasia
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