KUALA LUMPUR (Oct 24): Key Alliance Group Bhd (KAG) has subscribed for 99.3 million placement shares of XOX Bhd representing 9.09% of its total enlarged issued and paid-up share capital for RM4.64 million cash.

The placement shares of the mobile virtual network operator were issued at RM0.0467 each, and the subscription consideration was funded entirely from internally-generated funds.

KAG said the board of directors were of the view that the subscription was an opportune time to take a strategic stake in a telco asset turning over in excess of RM200 million.

Founded in 2005, XOX provides mobile phone services in Malaysia via Celcom’s 4G+, 4G, 3G and 2G network infrastructure.

As it also has more than two million subscribers, KAG said the strategic investment opens a window to work closely with XOX to fully optimize its newly launched cloud services.

KAG said the consideration is not expected to have any material effect on its earnings per share, net asset per share and gearing for the financial year ending March 31, 2019.

KAG closed up 0.5 sen or 11.11% to 5 sen for a market capitalisation of RM26.04 million.