Citaglobal Berhad (KLSE:CITAGLB) entered into a share purchase agreement to acquire 25% stake in Ifactors Sdn. Bhd. from Abu Bakar Bin Sutan Taharudin for MYR 21.2 million on October 26, 2023. In a related transaction, Citaglobal also entered into a subscription agreement to subscribe for 5% of equity in Ifactors. So post the completion of the acquisitions, Citaglobal will hold 30% equity interest in IFactors. The subscription amount for the proposed subscription and part of the purchase consideration for the proposed acquisition totaling MYR 14 million will be satisfied in cash, which are envisaged to be funded by Citaglobal vide funds based on earlier placement conducted. The remaining Purchase Consideration for the Proposed Acquisition of MYR 11.2 million will be satisfied via the issuance of the consideration shares. Ifactors reported net profit of MYR 7.7 million and net assets of MYR 16.8 million for the FYE December 31, 2022. The acquisition is conditional upon approval of Bursa Securities for the listing of and quotation for the consideration shares, approval of relevant authorities/parties and any other relevant regulatory authorities and/or parties. As on January 31, 2024, Citaglobal and Abu Bakar entered into a supplemental agreement to vary the date of issuance of consideration shares to no later than six months from the completion date of the
acquisition. The agreement became unconditional on January 31, 2024. The deal is targeted to be completed by the first quarter of 2024. Astramina Advisory Sdn Bhd acted as the financial advisor to Citaglobal.