Minetech Resources Berhad (KLSE:MINETEC) entered into a shares sale agreement to acquire remaining 15% stake in Minetech Asphalt Man International Sdn Bhd from Shia Fui Kin for MYR 3.6 million on June 15, 2023. Under the terms, within fourteen days of the execution of the agreement the sum of MYR 0.36 million shall be paid to the solicitors and the balance of MYR 3.2 million shall be made payable to the solicitors by the completion date which is three calendar months from the date of the agreement, or such other date as may be agreed upon between the parties upon which completion is to take place. In the event that the purchase consideration is not paid as stipulated above, such outstanding sum shall carry a late payment interest of 8% per annum calculated on daily basis. The consideration will be funded through internally generated funds. For the year ending March 31, 2023, Minetech Asphalt generated revenues of MYR 31.7 million, net profit of MYR 1.26 million and net assets of MYR 8.17 million.

The acquisition is not subject to the approval of the shareholders of Minetech and any other regulatory authorities. The acquisition is not expected to have any material effect on the earnings per share of Minetech Group for the financial year ending March 31, 2024. The acquisition will not have any material effect on the net assets per share and gearing of Minetech Group.