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Silverlake Axis plans to acquire three Silverlake private entities
MAINBOARD-LISTED Silverlake Axis (SAL) is planning to acquire three Silverlake entities in Malaysia.
The three companies - Silverlake Digital Economy (SDE), Silverlake Digitale (SD) and Silverlake One Paradigm (SOP) - are owned by the group's executive chairman, Goh Peng Ooi, who has a 70 per cent stake in each through Silverlake Investment, as well as by minority shareholders.
The purchase price will consist of a base sum of RM154.9 million (S$49.83 million), payable via new shares in SAL at S$0.71 per share, and "a variable performance based earn-out consideration", said Silverlake in a release to the Singapore Exchange on Friday.
The earn-out consideration is only payable when the entity chalks up an average year on year increase of at least 25 per cent in its adjusted post-tax profit over FY18 to FY2020. The sellers have the option to choose cash (subject to conditions) or share payment for the earn-out consideration.
Once the deal is completed, the three companies will become wholly-owned subsidiaries of SAL.
Dr Raymond Kwong, chief executive of SAL, said: "We have started the journey to transform and provide digital platforms for financial services innovations and collaborations. The digital capabilities of the target entities are synergistic with the group's vision and existing suite of digital economy offerings. Their addition will strengthen our position as the innovation accelerator in the rapidly changing financial services ecosystem."