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Datapulse not seeking shareholders' approval for proposed acquisition
DATAPULSE Technology Limited on Friday clarified that it will not need to get the nod from shareholders for a proposed acquisition, but will be seeking shareholders' approval for the proposed diversification of the company's core businesses, including the manufacturing of haircare products and cosmetics.
In a post-market close filing with the Singapore Exchange, the solutions provider of digital storage products and services said that shareholders' approval was not required for the proposed deal because the relative figures of the deal, based on the audited consolidated financial statements of the group for the financial year ended Jul 31, 2017 amount to less than 5 per cent.
Earlier this week, Datapulse announced that it was going to acquire one million ordinary shares in the capital of Wayco Manufacturing (M) Sdn Bhd for a cash consideration of S$3.5 million.
The company agreed to the S$3.5 million figure after taking into consideration the adjusted net tangible asset value of Wayco Manufacturing and the market value of the properties, as well as the future earnings potential of the company, among other things.
The company had on Thursday received an independent valuation report, valuing the properties at RM7.3 million (S$2.4 million).
The adjusted net tangible asset value of Wayco Manufacturing as at Jun 30, 2017, adjusted for the independent properties will be about RM 7.4 million, or approximately S$2.5 million, assuming an exchange rate of RM1: 0.3312.
Datapulse closed three Singapore cents higher at S$0.295 on Friday.