Sinotop plans to take up stake in TAS, which owns 20% in software developer Dapat Vista

TheEdge Fri, Mar 06, 2020 10:13pm - 4 years View Original


KUALA LUMPUR (March 6): Sinotop Holdings Bhd plans to acquire a 30% stake in Television Airtime Services Sdn Bhd (TAS) for RM7 million, which it intends to satisfy by cash and share issuance.

In a filing with Bursa Malaysia, Sinotop said it has inked a Heads of Agreement with the stakeholder Sabri Ab Rahman to further negotiate the proposal.

TAS currently own 20% equity interest in Dapat Vista (M) Sdn Bhd (DVSB), which is mainly involved in data analytics and software development. While the remainder 80% of DVSB is being held by Heitech Padu Bhd, the latter is in the midst of disposing of 60% of that to TAS for RM13.5 million. This means TAS will end up having 80% in DVSB.

DVSB, said Sinotop, has secured government contracts to access and develop small application and connection services to 370 government agencies and departments. The proposed acquisition comes with a profit after tax guarantee from SAR of not less than RM9 million spread between financial years ending Dec 31, 2020 (FY2020) and FY2022.

The HoA is valid for 60 days, or an additional 30 days or more as the parties agree, for a definitive agreement to be inked between them for the proposed transaction.

Sinotop shares closed 23.8% or 2.5 sen higher at 13 sen today, giving it a market capitalisation of RM394.9 million.

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