Milux Corporation Bhd has proposed to acquire smart home appliances distributor Movon Sdn Bhd for RM150 million in a share-swap transaction.
The company said it had entered into a conditional share sale agreement with Abletech Solutions Sdn Bhd, Datuk Ir. Dr. Lim Jee Gin and other related parties to acquire the entire equity interest in Movon.
The purchase consideration will be satisfied entirely through the issuance of 220.59 million new Milux shares at an issue price of RM0.68 each.
Under the agreement, 186.76 million new shares will be issued to the vendors and their nominated parties upon completion of the acquisition, while the remaining 33.82 million shares will be held in trust as security for a profit guarantee provided by the guarantors.
Upon completion of the exercise, Movon will become a wholly owned subsidiary of Milux.
Milux expects the enlarged group to benefit from operational synergies by integrating Movon’s billing systems, inventory management capabilities and supply chain operations.
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