IQZAN HOLDING BERHAD ("IQZAN" OR "COMPANY")
- SHARE SALE AGREEMENT IN RELATION TO THE PROPOSED ACQUISITION OF 2,508,690 ORDINARY SHARES, REPRESENTING 51% OF THE TOTAL ISSUED AND PAID-UP SHARE CAPITAL IN HK KITARAN SDN. BHD. BY NEXUS APPLAUSE SDN. BHD., A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY ("PROPOSED ACQUISITION")

We refer to IQZAN’s announcements dated 16 and 21 May 2024 in respect of the aforesaid matter.

In this connection, kindly furnish Bursa Securities with the following additional information for public release:

1) The justification for the purchase consideration based on the PE ratio of 4.86 times compared to the PE ratio of comparable companies of similar business activities of HK Kitaran. 

2) The basis for the profit guarantee amount of RM1,470,000 to be significantly lower than the latest audited net profit of HK Kitaran for the FYE 2023.

3) Confirmation on whether the Proposed Acquisition tantamount to a diversification in operations of Iqzan Group pursuant to Paragraph 10.13 of the Main Market Listing Requirements and the justification, taking into consideration of the principal business activities of HK Kitaran and its latest audited Net Assets and Net Profits.

4) Confirmation on whether the Proposed Acquisition is part of the Group’s regularisation plan to address the PN17 status. If no, to clarify whether there are any extraneous factors which warrant the interim corporate proposal, and if without such interim corporate proposal, it would adversely affect the Group’s ability to regularize its condition.

Please furnish Bursa Securities with your reply within one (1) market day from the date hereof.

Yours faithfully

Listing

Regulation

cc: Market Surveillance Dept.  Securities Commission (via fax)