KUALA LUMPUR (May 16): Censof Holdings Bhd's wholly-owned subsidiary Century Software (M) Sdn Bhd (CSM) will acquire majority stakes in two companies for RM1.3 million.

In a bourse filing today, the group said CSM had entered into a share sale and purchase agreement with shareholders Abdul Rehman Khalid and Shanmugam Pachapan to acquire a 51% stake in both Netsense Business Solutions Sdn Bhd (NBSSB) and its Singapore-based business Netsense Business Solutions Pte Ltd (NBSPL) for RM1.3 million.

Under the deal, CSM will acquire 255,000 shares in NBSSB and 51,000 shares in NBSPL.

NBSSB has 500,000 shares while NBSPL has 100,000 shares.

In both companies, Abdul Rehman maintains a 95% stake while Shanmugam holds the remaining 5% shares.

"The acquisition will enable the subsidiary, CSM, to fast-track the commercial sector under Acumatica ERP System and improve the revenue, strengthen the cash flows, profitability as well as sustain long-term growth," said Censof.

The group added that the acquisition will not affect the issued and paid-up capital and substantial shareholders' shareholdings of CSM and Censof as it does not involve the issuance of new shares by the company.

"The acquisition is not expected to have any material effect on the earnings of the group for the financial year ending March 31, 2020 (FY20)," it said.

At 2:58pm, shares in Censof fell 3.57% or half a sen to 13.5 sen, with 50,500 shares traded, giving the group a market capitalisation of RM67.73 million.