Cape EMS Berhad has entered into a conditional stock purchase agreement for the proposed acquisition of iConn Inc. and proposed private placement of up to 92.3 million new ordinary shares.
Under the proposed acquisition, Cape EMS will be acquiring the entire stake in iConn comprising 50,072 common stocks for a cash consideration of USD16.5 million (equivalent to approximately RM76.6 million) which will be funded through the proceeds to be raised from the proposed private placement, internally generated funds and/or bank borrowings. The seller has given a profit guarantee of USD8 million (equivalent to approximately RM37.1 million) over an agreed period of 36 months starting from 1 January 2024 until 31 December 2026.
Cape EMS said the acquisition will integrate iConn’s design and engineering capabilities into its process, allowing the group to expand its EMS segment’s range of services, thereby improving its appeal to existing and potential customers. In addition, to also will have a geographical advantage in supporting customers from the USA as well as tapping into iConn’s business and supply networks.
