Diversified Gateway Solutions Berhad (KLSE:DGSB) entered into non-binding term sheet to acquire 51% stake in Excel Commerce Solutions Sdn Bhd from Lu Khin Phin and Geh Kooi Hong for MYR 4.6 million on November 23, 2021. As per terms of transaction, Diversified Gateway Solutions Berhad will acquire 0.51 million shares. Lu Khin Phin and Geh Kooi Hong will sell 0.3 million shares and 0.2 million shares representing 30% stake and 20% stake respectively. In a related transaction, Diversified Gateway Solutions Berhad entered into non-binding term sheet to acquire 51% stake in Finther Tecnologica Sdn Bhd from Encik Faizal Bin Bahadon and Chan Ming Chong for MYR 7.7 million on November 23, 2021. As of March 31, 2022. The shareholders of DGSB have approved the transaction.

The purchase consideration for the Proposed Acquisition will be satisfied in cash, which is expected to be funded by internally-generated funds of the Group. The Term Sheets are non-binding and are subject to definitive sale and purchase agreements (“Definitive Agreements”) to be negotiated and executed by the parties to the Term Sheets. The sale and purchase of shares in Excel and Finther shall be inter-conditional and shall be completed simultaneously.

The Term Sheets will not have any effect on the share capital, earnings, earnings per share, net assets, net assets per share, and shareholdings of the substantial shareholders of the Diversified Gateway Solutions Berhad for the financial year ending June 30, 2022. M&A Securities Sdn. Bhd acted as financial advisor to Diversified Gateway Solutions Berhad. The transaction is expected to be completed with in 14 days.

Diversified Gateway Solutions Berhad (KLSE:DGSB) completed the acquisition of 51% stake in Excel Commerce Solutions Sdn Bhd from Lu Khin Phin and Geh Kooi Hong on May 17, 2022.