Datapulse Technology: going about it the wrong way

ON Dec 28, 2017, Datapulse Technology issued an eight-page response to detailed queries from the Singapore Exchange regarding the company's acquisition of its new Malaysian business, Wayco Manufacturing (the target company), from Way Company (the vendor).

However, the central question remains unanswered: Why was the board in such a hurry that it took just five days to almost completely re-constitute the board (without the involvement of any of the former independent directors) and complete the acquisition? Was there a pre-Christmas sale that the board needed to take advantage of? Did it come with free gift-wrapping?

When a company makes a hasty acquisition in a new business, it raises questions about whether the acquisition is arms-length and the board has exercised reasonable diligence. The company's responses give no comfort.