PROPOSED ACQUISITION OF SHARES IN CHEETAH HOLDINGS BERHAD
XOX BHD |
Type | Reply to Query |
Reply to Bursa Malaysia's Query Letter - Reference ID | IQL-09022021-00001 |
Subject | PROPOSED ACQUISITION OF SHARES IN CHEETAH HOLDINGS BERHAD |
Description | XOX BHD - PROPOSED ACQUISITION OF SHARES IN CHEETAH HOLDINGS BERHAD |
Query Letter Contents | We refer to your Company’s announcement dated 8 February 2021, in respect of the aforesaid matter. 1) Justification for the purchase consideration of RM44,616,000 or RM1.32 per ordinary share in Cheetah Holdings Berhad (“Cheetah Shares”), in particular the premium of 37.03% to the 5-day volume weighted average market price of Cheetah Shares up to and including 3 February 2021 of RM0.9633.
Yours faithfully, Cc : Market Surveillance Dept. , Securities Commission (via fax) |
(Unless otherwise defined in this announcement, all terms used herein shall have the same meaning as those defined in the announcement dated 8 February 2021.)
Reference is made to the Company’s announcement made on 8 February 2021.
The Board of Directors of XOX Bhd (“XOX” or “the Company’”) wishes to further announce that purchase consideration of RM44,616,000 or RM1.32 per ordinary share in Cheetah (“Cheetah Shares”), in particular the premium of 37.03% to the 5-day volume weighted average market price of Cheetah Shares up to and including 3 February 2021 of RM0.9633 was arrived after taking into consideration of the following :
1. The number of existing shares of Cheetah is relatively small with low daily trading volume, as the transaction involved is a substantial shareholding, therefore commanding a premium pricing;
2. Cheetah posted a profit before taxation of RM4.27 million and net assets of RM128.72 million for the 6 months financial period ended 31 December 2020;
3. Cheetah possesses a healthy cash position, its cash and bank balances and short term deposit with the financial institution amount to RM53.62 million as at 31 December 2020;
4. The Proposed Acquisition is the creation of synergies for XOX to expand market share, cross-selling of both Cheetah and XOX products will appeal to the youth market and increase the product offerings to our dealers; and
5. It is a more efficient way for XOX to increase its revenue streams and branding by acquiring an influential stake in a directionally synergistic business with a healthy balance sheet and operational coverage.
This announcement is dated 9 February 2021. |
Announcement Info
Company Name | XOX BHD |
Stock Name | XOX |
Date Announced | 09 Feb 2021 |
Category | General Announcement for PLC |
Reference Number | GA1-09022021-00048 |