Techbase announced that its subsidiaries Honsin Apparel Sdn Bhd and HiQ Media (Malaysia) Sdn Bhd had entered into a collaboration agreement with Target 1 Sdn Bhd to attain control of South Malaysia Industries Berhad, a company
listed on the Main Market of Bursa Malaysia Securities Berhad.
The parties have also seek to include to vote as a group on a unanimous basis in respect of all matters relating to the Target Co, including any material issues and decisions in relation to the business of the Target Co and maintain consolidated control and management of the Target Co.
Upon the execution of the agreement, Honsin and HiQ will be classified a persons acting in concert with T1 and have collectively own more than 33% shares of the Target Co, thereby triggering the obligation to extend a mandatory general offer to acquire all the remaining Target Co's shares not already owned by the Parties as well as the other PAC of the Parties.
The parties view the collaboration agreement to not have any effect on the share capital and substantial shareholders' shareholdings of the company and have any material immediate effect on the earnings.
