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M1 to buy ICT solutions provider AsiaPac Distribution
TELCO M1 announced on Wednesday that it will be buying 100 per cent of integrated information and communications technology (ICT) network solutions provider, AsiaPac Distribution Pte Ltd.
M1 said that it will pay up to a total of S$20 million for this purchase, in a move that will "fast track (M1's) entry into the ICT segment and enhance its proposition as an integrated corporate ICT solutions provider".
The telco will make the purchase via its wholly owned subsidiary, M1 Net Ltd, which entered into the share purchase agreement on Wednesday.
The proposed acquisition, which will turn AsiaPac into an indirect wholly owned subsidiary of M1, is subject to the completion of conditions set out in the agreement.
M1 Net Ltd will pay S$8 million upon completion of the agreement. Following completion, further amounts of up to S$12 million may be payable by way of earn-out payments, subject to the terms and conditions in the agreement, based on AsiaPac’s audited net profit after tax for its financial years up to and ending on June 30, 2019.