InvestIdeas

Lau acquired 232 million units of PUC’s shares via off-market transactions, representing 9.64% of the group’s share base.

On the same day, Liew acquired 241.55 million shares, equivalent to a 9.8% stake.

In addition, Lau increased his stake in PUC on Monday by acquiring another 10 million shares, bringing his total holdings in the integrated media services and payment solutions provider to 248 million shares, or 10.05%.

PUC reported a net profit of RM1 million in the fourth quarter ended Sept 30, 2023 (3QFY2023), compared to a net loss of RM9.66 million a year ago. This improvement was mainly due to the reversal of a provision for doubtful debts.

Quarterly revenue also jumped nearly tenfold to RM14.67 million from RM1.37 million in the same period.

Refocus on the company’s online shopping site — Presto Mall (formerly known as 11Street).

Venture into the provision of loyalty e-commerce redemption solutions and be a loyalty points aggregator. This would help to attract “footfall” to Presto Mall, which is not doing too well.

Last November, when it was announced that PUC would team up with e-wallet operator TNG Digital Sdn Bhd to offer redemption services for the latter’s loyalty programme, GOrewards.

Besides TNG Digital, PUC is also collaborating with Grab, Boost, EZ-Link, Plus Miles, BonusLink, Shell and AmBank.

Meanwhile, the group is in discussions to rope in an insurance company, a stockbroker, an airline, an airport lounge operator, a resort operator and a few banks.

Genting Plantations Bhd is a substantial shareholder of PUC with a 6.59% stake, while Cheong has 6.41% equity interest.

PUC’s July 2021 announcement on its bid states that its strategic partners in the consortium are the Sabah government, the Pahang government and a conglomerate, which it does not name.

While it is understood that both state governments will each have a 20% stake in the consortium, it is believed that Genting Digital Sdn Bhd, a wholly-owned subsidiary of Genting Bhd, is likely to take up a direct stake in the digital bank consortium.

In its filing, PUC says that it has entered into conditional subscription agreements with three companies in relation to its proposed private placement of 375.06 million new shares at 12.5 sen per share, to raise RM46.88 million.

The three companies that are buying the new shares are GPVF, Matrix Edge Venture Sdn Bhd (MEV) and KH Lim Capital Sdn Bhd (KHLC).

MEV, a company whose shareholders comprise Chai Hann Lin (40%), Sabah-based Borneo Armor Sdn Bhd (20%) and Datuk Seri Adnan Wan Mamat (40%), who is also a director of a subsidiary of the Royale Pahang Durian Group, will subscribe for 125.02 million PUC shares or a 7.69% stake, and KHLC, whose shareholders are Datuk Anthony Lim Kim Hai of the KH Lim Group (80%) and Yap Choon Fong (20%), is subscribing for 87.51 million shares or 5.38% in PUC post-issuance.

To be satisfied partly via cash (“Cash Consideration”) and partly via issuance of new ordinary shares in PUC (“PUC Shares” or “Shares”) (“Consideration Shares”)

Mode of settlement and profit guarantee:-

a. RM100,000,000.00 in the form of new PUC ordinary shares at Completion (as defined below) of the Proposed Acquisitions. To this end, PUC will issue 800,000,000 ordinary shares at the value of RM0.125 per ordinary share.

b. RM7,500,000.00 is payable to the Vendors in equal proportion within three (3) calendar months

Indicative Purchase Consideration of RM200.00 million

PUC Bhd (KL:PUC) said it plans to acquire digital money lender Alevate Capital Sdn Bhd and digital transformation solution provider Alevate Solutions Sdn Bhd for a total of RM200 million.

Profit guarantee of up to RM32 million over the next two financial years.

Under the heads of agreement, the group will settle the first RM100 million through the issuance of 800 million shares priced at 12.5 sen per share.

Once Alevate Capital and Alevate Solutions achieve a profit before taxation (PBT) of RM16 million from July 1, 2024 to June 30, 2025, PUC will pay an additional RM7.5 million in cash to the vendors.

“The remaining balance will be subject to achieving a further profit guarantee milestone of RM32.0 million in PBT from July 1, 2024 to June 30, 2026,” it said.

Secured a RM10mil contract from non-profit organisation Green Growth Asia Foundation (GGAF) to develop a cutting-edge customer relationship management (CRM) system for GGAF's donation and fundraising activities on its dedicated platform.