See Hup Consolidated Berhad (KLSE:SEEHUP) entered into a share sale agreement to acquire 51% stake in Hot Colour Furniture Sdn Bhd from Y Bhg Dato’ Goh Boon Koon, Goh Boon Leong and others for MYR 7.7 million on January 3, 2018. See Hup Consolidated Berhad will pay MYR 0.76 million as deposit upon execution of the agreement and the balance sum shall be paid within 3 months from the date of agreement with an extension of 1 month subject to late payment interest of 6% p.a. As per terms of the transaction, See Hup Consolidated Berhad will acquire 5.84 million shares from Y Bhg Dato’ Goh Boon Koon and 1.43 million shares from Goh Boon Leong for MYR 7.6 million. The consideration will be financed through a combination of internally generated funds and bank borrowings of See Hup Consolidated Berhad. Upon completion of the transaction, Hot Colour Furniture Sdn Bhd will become a 51% owned subsidiary of See Hup Consolidated Berhad. In the event of termination, if sellers commit any breach of agreement than shall refund all monies to See Hup Consolidated Berhad and shall further pay MYR 0.76 million as liquidated damages to the company and if See Hup Consolidated Berhad shall fail to complete the agreement then MYR 0.76 million will be forfeited as liquidated damages and other sums paid by company to sellers. For the year ended October 31, 2016, Hot Colour Furniture Sdn Bhd reported total revenue of MYR 1.18 million, loss before tax of MYR 0.22 million, loss after tax of MYR 0.4 million, net liabilities of MYR 4.98 million. The transaction is subject to being satisfied with the results of the due diligence of Hot Colour Furniture Sdn Bhd. The acquisition is not subject to the approval of shareholders of See Hup Consolidated Berhad or any government authority. The transaction is expected to close in the first quarter of 2018. The acquisition is not expected to have any material effect on the earnings and EPS of See Hup Consolidated Berhad for the financial year ending March 31, 2018.