Flexcomm Limited signed a contract to acquire 85% stake in PT Scan Nusantara from SCAN Associates Berhad (KLSE:SCN) for $0.1 million on April 30, 2014. SCAN Associates will sell its 1.18 million shares. Flexcomm will pay $0.02 million on the date of the agreement, $0.04 million upon the completion of the legal, financial and business due diligence conducted on SCAN Associates Berhad and the Group to the satisfaction of Flexcomm Limited and $0.04 million on the completion date. Subject to completion taking place, Flexcomm Limited shall bear all costs and expenses of the incurred from January 1, 2014. SCAN Associates shall grant to Flexcomm Limited the right to use the name “PT SCAN Nusantara” or any similar sounding name for a period of one year from the completion date. PT Scan Nusantara reported net loss and net liabilities of IDR 3.84 billion ($0.31 million) and IDR 9 billion ($0.74 million) respectively for the year ended December 31, 2013. Dato' Norbik Bashah bin Idris will be retained as a member of the Board of Commissioners of the PT SCAN Nusantara for a period of 12 months from the date of completion.

The transaction is not subject to approval of shareholders or any relevant authorities. The transaction is expected to be completed within 12 months from the date of agreement. The sale proceeds will be used for payment of staff salaries. The transaction is not expected to have a material impact on the earnings per share of SCAN Group for the financial year ending December 31, 2014. The currency conversion for financials was done through www.oanda.com as at December 31, 2013.