Econframe Berhad (KLSE:EFRAME) signed conditional share sale agreement to acquire 65% stake in Lee & Yong Aluminium Sdn Bhd from Yong Kuen Hwan for MYR 18 million on January 17, 2023. The LYASB Purchase Consideration is to be satisfied/settled in the following manner: Upon execution of agreement, a cash payment equivalent to 10% of the LYASB Purchase Consideration (MYR 1.72 million) to be paid. and, on completion date, a cash payment equivalent to approximately 37% of the LYASB Purchase Consideration (MYR 6.38 million) and Issuance of 10,459,770 Consideration Shares at an issue price of MYR 0.87 per Consideration Share, equivalent to approximately 53% of the LYASB Purchase consideration (MYR 9.1 million). In consideration of Econframe acquiring the LYASB sale shares from Yong Kuen Hwan, Yong Kuen Hwan here by irrevocably and unconditionally guarantees and undertakes to Econframe that LYASB shall achieve an audited PAT of not less than MYR 4 million for each of the 12-month FPE August 31, 2024 (?Year 1?), August 31, 2025 (?Year 2?) and August 31, 2026 (?Year 3?) and a minimum cumulative audited PAT of not less than MYR 12 million. The cash purchase consideration will be funded through internally generated funds. As of December 31, 2022, the total assets of LYASB amount to approximately MYR 13.9 million, total revenue of MYR 11.89 million, gross profit of MYR 4.529 million, PAT of MYR (3.012) million.

The transaction is subject to approval of shareholders of Econframe, LYASB?s banking facility, Bursa Securities, for the listing of and quotation for the Consideration Shares on the ACE Market of Bursa Securities in respect of Proposed Acquisition, the conduct and completion of a due diligence on LYASB, its business, operations and affairs and any other relevant authorities and/or parties, if required. The Proposed Acquisitions are expected to be completed in the second half of the calendar year 2023. As of March 7, 2023, on behalf of the Board, M&A Securities announce that on March 7, 2023, Econframe Berhad has submitted an extension of time application of 2 months up to May 17, 2023 to submit the additional listing application to Bursa Securities for its approval. As on May 12, 2023, in connection with the capital injection by Yong Kuen Hwan, Lee & Yong Aluminium issued 0.5 million new shares resulting in increase in total share capital. Yong Kuen Hwan's 65% stake now represents 0.49 million shares. As on May 17, 2023, the additional listing application for the proposed acquisition has been submitted to Bursa Securities. As of June 9, 2023, Bursa Malaysia Securities Berhad approved the listing of and quotation for 10,459,770 new shares in Econframe. As of June 22, 2023, the board of directors of Econframe approved the transaction. As of July 14, 2023 Econframe and Yong Kuen Hwan recorded in writing their mutual agreement to extend the date to obtain and/or fulfil the conditions precedent in accordance with Acquisition respectively for a further period up to October 17, 2023. As of September 6, 2023 All the conditions set out have been fulfilled. M&A Securities Sdn. Bhd. acted as financial advisor to Econframe Berhad.

Econframe Berhad (KLSE:EFRAME) completed the acquisition of 65% stake in Lee & Yong Aluminium Sdn Bhd from Yong Kuen Hwan on September 8, 2023.