KUALA LUMPUR (Sept 17): Fintec Global Bhd is acquiring a 19.82% stake in label printing and packaging solution services provider Komarkcorp Bhd for RM16.4 million.

Fintec Global’s wholly-owned subsidiary Asiabio Capital Sdn Bhd is buying the stake from Koh Hong Muan @ Koh Gak Siong and Aimas Enterprise Sdn Bhd, the group said in a filing with Bursa Malaysia.

It is acquiring a 15.81% stake in Komarkcorp from Koh and 4.01% stake from Aimas, in which Koh also owns a 16.7% interest.

The other shareholders of Aimas are Koh Chie Jooi, Koh Chee Mian, Koh Chee Kian, Koh Chee Hao and Lee Poh Tin. Each of them own a 16.66% stake.

Fintec Global said the acquisition will be funded entirely from internally-generated funds.

The group said this acquisition is intended to allow it to capitalise on the market’s current high demand for security prints or codes like Radio Frequency Identification Devices (RFID) and Quick Response Code (QR Codes).

“Komarkcorp has invested heavily in machineries that has the capability to develop and produce new products such as digital personalized labels, variable data prints and security prints,” it said.

Fintec Global also said Komarkcorp, which has been loss-making since financial year ended April 30, 2017, has the potential to turn around its financial performance if it adapts to the market’s changes and demands.

Fintec Global’s share price gained 0.5 sen or 11.1% to five sen today, giving it a market capitalisation of RM30.7 million.