Ho Wah Genting Berhad entered into a Memorandum of Understanding to acquire 55% stake in Advanced Apotheke Sdn Bhd from Leong Oi Heng on August 23, 2023. A refundable deposit of MYR 0.25 million which is paid by Ho Wah Genting Berhad to Leong Oi Heng within a period of 3 months from the date of the Memorandum (?Deposit?). The balance purchase price is to be paid by Ho Wah Genting Berhad to Leong Oi Heng in accordance with the terms of the Definitive Agreement to be entered into between the Parties within six (6) month period from the date the Memorandum or such extended period as may be agreed in writing by the Parties (?Validity Period?).

The Parties agree to execute the Definitive Agreement within the Validity Period. Upon expiry or earlier termination of the Memorandum, Leong Oi Heng shall return the Deposit and all monies paid towards the total purchase price (free of interest) within thirty days from the date thereof, failing which Ho Wah Genting Berhad shall be entitled to charge an interest of 8% per annum on the amount due to Ho Wah Genting Berhad up to the date of full settlement of the same. The Memorandum is not subject to the approval of HWGB?s shareholders and any regulatory authorities.

The Memorandum is not expected to have any immediate material effect on the earnings, net assets, gearing, and share capital of HWGB. However, the Proposed Acquisition is expected to contribute positively to the earnings of HWGB upon the successful completion of the Proposed Acquisition.