KUALA LUMPUR (Apr 15): As part of its plan to diversify its business, Vortex Consolidated Bhd says it is acquiring a firm with a money-lending licence for RM2 million.

In a filing with Bursa Malaysia today, Vortex said it is buying  Valhalla Holdings Sdn Bhd from Choo Peng Hung and Chan Chooi Teng.

Choo is a director and major shareholder of both Vortex and Valhalla. Meanwhile, Chan is  the spouse of Choo, and also a director and major shareholder of Valhalla.  

Valhalla is the holding company of Valhalla Capital Sdn Bhd, which has obtained a money-lending licence from the Ministry of Housing and Local Government for a two-year period ending Oct 31, 2020. Valhalla Capital has however yet to commence its business as a money lender.

Vortex had previously said it wants to diversify its business to reduce reliance on its existing business in the ICT and construction sectors.

"The board believes that the money-lending business would provide another stream of revenue to Vortex group’s existing business as well as reduce Vortex group’s dependency on the existing business,” the group said in today’s filing.

It said the purchase consideration will be satisfied through internally-generated funds.

"Barring any unforeseen circumstances, the proposed acquisition is expected to be completed in the second quarter of the calendar year 2019," it added.

Shares of Vortex closed up 0.5 sen or 2.86% today at 18 sen for a market capitalisation of RM57.33 million.