KUALA LUMPUR: Revenue Group Bhd has proposed to purchase the remaining 49% equity interest in Revenue Secure Sdn Bhd for RM31.85mil.

In a filing with Bursa Malaysia, Revenue said its wholly-owned subsidiary, Revenue Harvest Sdn Bhd had entered into a conditional share sale agreement with Ho Ee Lock and Chang Chew Soo for the proposed acquisition.

The cashless payment solutions provider said the purchase consideration would be satisfied by the issuance of 21.09 million new ordinary shares in Revenue at an issue price of RM1.51 each.

Revenue Secure is principally involved in research, development, deployment of secured card issuing technology, provision of consultancy services on card programming and computer technology with encryption and high-end security features for all kinds of applications.

Based on the unaudited financial statements for the 6-month period ended Dec 31, 2021, Revenue Secure recorded a profit after tax of RM2.2mil and a net asset of RM3.86mil.

Upon completion of the proposed acquisition, Revenue Secure will be a wholly-owned subsidiary of Revenue Harvest and an indirect wholly-owned subsidiary of Revenue.

“The proposed acquisition represents a strategic move by Revenue to streamline the company’s group structure and assume full control of the technology and operation of its subsidiary company, thus allowing Revenue to manage and deploy its resources in an efficient manner.

“The proposed acquisition will allow the company to fully tap on the strong R&D capabilities and existing software solutions of Revenue Secure as mentioned above.

“In addition, the proposed acquisition will enable both parties to further leverage on each other’s strength and business relationship and provide a total issuing and acquiring payment infrastructure and solution to our customer(s),” it said.

Source: The Star