Indonesian IT firm to reverse take over VisDynamics

PETALING JAYA: VisDynamics Holdings Bhd has proposed to acquire Indonesian IT firm PT Cipta Srigati Lestari (CSL), which will lead to a reverse take over of VisDynamics, as the deal will be satisfied via the issuance of new shares.
In a filing with the stock exchange, VisDynamics said it had entered into heads of agreement (HOA) with the ultimate controlling shareholder of PT Cipta Srigati Lestari (CSL) to negotiate exclusively the detailed terms and conditions of the proposed reverse take over exercise.
Both parties intend to finalise and enter into the relevant definitive agreements within 60 days from the HOA date.
The reverse take over exercise, which entails VisDynamics or a special purpose vehicle acquiring the entire issued and paid-up share capital in CSL for a purchase consideration to be determined later, will be satisfied by the issuance of new ordinary shares at an issue price of 28 sen per share.
VisDynamics is involved in the design, research, develop and assemble of back-end semiconductor equipments.
CSL meanwhile is engaged in the business of providing IT solutions in the smartcard manufacturing industry. The ultimate controlling shareholders of CSL are Steven Chandra, Roy Anthony Irawan, Fredyanto Kurniadi and Nathan Tirtana.
Apart from that, Visdynamics has proposed a management buyout by the current management headed by CEO Choy Ngee Hoe of all the equity interest in the existing VisDynamics' group of companies for a cash consideration to be determined later.
Filings with the stock exchange show that CEO Choy Ngee Hoe is the single largest shareholder of VisDynamics, with a 30.32% stake.
VisDynamics has also proposed a fund raising exercise via the issuance of new shares, whereby the utilisation of proceeds will be determined later.
It reported a 17.39% gain in net profit to RM682,000 for the first quarter ended Jan 31, 2015 against RM581,000 in the previous corresponding period.
For the financial year ended Oct 31, 2015, it returned to the black with a net profit of RM1.24 million following two-year losses.
VisDynamics' share price was down 2.5 sen or 6.49% to 36 sen yesterday on some 5.61 million shares done.