Sumatec Resources Berhad (KLSE:SUMATEC) entered into a heads of agreement to acquire Markmore Energy (Labuan) Ltd. from Tan Sri Halim bin Saad and Abu Talib bin Abdul Rahman for MYR 1.6 billion on October 26, 2017. Sumatec Resources Berhad shall pay MYR 1.2 billion in cash and MYR 336 million in stock through issuance of 1.68 billion post consolidation shares. In related transactions, Sumatec Resources Berhad will undertake a share consolidation to consolidate every four existing shares into one share and a debt settlement exercise. Sumatec Resources Berhad will also undertake a fund raising of MYR 1.52 billion and the proceeds shall be used to fund cash portion of the transaction. The transaction is subject to approval of Tan Sri Halim bin Saad and Abu Talib bin Abdul Rahman, completion of due diligence, approval of governmental authority in the Republic of Kazakhstan, approval of Board of Directors and shareholders' of Sumatec Resources Berhad, approval of Bursa Malaysia Securities Berhad for the listing of and quotation for the applicable securities, approval of Bank Negara Malaysia if required, approval of anti-monopoly agency of the Republic of Kazakhstan and obtaining written confirmation from M&A Securities Sdn Bhd of the successful completion of the proposed rights issue. In the event, a share sale agreement is not entered into within six months from the date of the signing of heads of agreement or such extended time as mutually agreed, the heads of agreement shall lapse. The transaction is expected to be earnings accretive and will contribute positively to the long-term future earnings and cash flow of Sumatec Resources. M & A SECURITIES Sdn. Bhd. acted as the financial advisor to Sumatec Resources Berhad. FHMH Corporate Advisory Sdn. Bhd. acted as the financial advisor to the Board and non-interested shareholders of Sumatec Resources Berhad. Sumatec Resources Berhad (KLSE:SUMATEC) cancelled the acquisition of Markmore Energy (Labuan) Ltd. from Tan Sri Halim bin Saad and Abu Talib bin Abdul Rahman on October 26, 2018.