KUALA LUMPUR: Sinotop Holdings Bhd’s major shareholder, Datuk Justin Soo Sze Ching, plans to inject his construction company into the group in line with its strategic plan to expand and strengthen its infrastructure construction business to further enhance the group’s earnings.

In a filing with Bursa Malaysia yesterday, Sinotop said it has signed a conditional share sale agreement with Soo for the proposed acquisition of Asianmax Corp Sdn Bhd for RM96 million.

The proposed acquisition is deemed a related-party transaction as Soo is an executive director and holds a 15.19% stake in Sinotop, it said.

This follows an announcement by Sinotop on April 1 that it had accepted a letter of offer from Soo for the proposed acquisition.  

The proposed acquisition will be satisfied via RM14.4 million cash, RM7.7 million via the issuance of 28.52 million new shares at an issue price of 27 sen per share and RM73.9 million via the issuance of 273.7 million new irredeemable convertible preference shares (ICPS) at an issue price of 27 sen a piece.

The issue price of 27 sen each represents a 1.5% discount to the five-day volume weighted average market price of Sinotop shares of 27.41 sen up to March 28, 2019.

The ICPS will be issued at 27 sen each with a conversion ratio of one ICPS to one Sinotop share.