Company Name: KOBAY TECHNOLOGY BERHAD
Stock Name: KOBAY
Date Announced: 28 May 2021
Category: General Announcement for PLC
Reference Number: GA1-27052021-00095
Type: Announcement
Subject: TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) NON RELATED PARTY TRANSACTIONS
Description:
KOBAY TECHNOLOGY BERHAD (“KOBAY” OR “COMPANY”)
(I) PROPOSED ACQUISITION; AND
(II) PROPOSED DIVERSIFICATION
(COLLECTIVELY REFERRED TO AS THE “PROPOSALS”)
We refer to the announcement dated 26 February 2021 whereby the Company (“Purchaser”) had on even date entered into a memorandum of understanding with Lim Beng Cheong and Chong Huei Shin (collectively referred to as the “Vendors”) to set out the understanding and intention in relation to the proposed acquisition of 70% equity interest in the Avelon Group (as defined below).
On behalf of the board of directors of Kobay (“Board”), Affin Hwang Investment Bank Berhad (“Affin Hwang IB”) wishes to announce that the Company had on 28 May 2021 entered into a conditional share sale agreement (“SSA”) for the following:
(i) proposed acquisition of 70% equity interest in Avelon Healthcare Sdn Bhd (“Avelon Healthcare”), Galaxis Healthcare Sdn Bhd (“Galaxis Healthcare”), Avelon Arise Sdn Bhd (“Avelon Arise”), Galaxis Pharma Sdn Bhd (“Galaxis Pharma”) and Arise Healthcare Sdn Bhd (“Arise Healthcare”) (collectively referred to as “Avelon Group” or “Target Companies”) from the Vendors for a total cash consideration of up to RM47,665,676.80 (“Purchase Price”) (“Proposed 70% Acquisition”); and
(ii) proposed granting of a call and put option for the Vendors’ remaining equity interest in the respective companies in the Avelon Group after the Proposed 70% Acquisition (“Proposed Call and Put Option”).
(The Proposed 70% Acquisition and Proposed Call and Put Option are collectively referred to as the “Proposed Acquisition”)
In conjunction with the Proposed Acquisition, on behalf of the Board, Affin Hwang IB also wishes to announce that Kobay proposes to undertake the proposed diversification of the existing principal activities of the Company and its subsidiaries (“Kobay Group” or “Group”) to include the wholesale and retail sale of pharmaceutical and healthcare products (“Proposed Diversification”).
(The Proposed Acquisition and Proposed Diversification are collectively referred to as the “Proposals”)
Please refer to the attachment for further details.
This announcement is dated 28 May 2021.
Please refer attachment below.
Attachments :
Kobay Technology Bhd – Announcement (28.5.2021).pdf