PUC Berhad ("PUC" or the “Group”), an innovative loyalty to redemption, e-commerce, digital marketing and digital payment solutions provider, is pleased to announce the signing of a Heads of Agreement (“HOA”) for the proposed acquisitions of 100% equity interest in Alevate Capital Sdn. Bhd. (“Alevate Capital”) and Alevate Solutions Sdn. Bhd. (“Alevate Solutions”) from Eatcosys Sdn Bhd (“Eatcosys”), a wholly subsidiary of Incite Innovation Sdn. Bhd. (“Incite”), and Mr. Tham Lih Chung respectively. Both Eatcosys and Mr. Tham Lih Chung collectively known as the vendors. According to a report by HSBC and KPMG titled “Emerging Giants in Asia Pacific”, both Eatcosys and Presto, a revolutionary home-grown social marketing app operated by PUC are recognised as potential unicorns.
These strategic acquisitions are valued at RM200 million and are set to propel PUC’s capabilities by adding a Fintech vertical that will complement the existing Marketing Technology ("Martech") and Entertainment Technology sectors. This integration will allow the three divisions to create synergies and enhance PUC’s overall service offerings and operational efficiencies, with a profit guarantee of up to RM32 million for the next two financial years.
Alevate Capital, a digital lender licensed by the Ministry of Housing and Local Government (“KPKT”), provides money lending services under the Moneylenders Act 1951. Alevate Capital is highly regarded by Small and Medium Enterprises (“SMEs”) for its efficient and convenient credit accessibility, transparent financing rates, streamlined onboarding, rapid credit assessments, and simplified documentation process. Meanwhile Alevate Solutions is a technology solutions, operations optimisation, and digital transformation solutions provider. These acquisitions will significantly enhance PUC’s service offerings and operational efficiencies, complementing the existing solutions to clients to provide a holistic and integrated solution. This positions PUC as an enhanced integrated technology solutions provider, capable of delivering comprehensive and seamless services to meet the diverse needs of its clients.
Under the HOA, PUC will settle the first RM100.0 million of the purchase consideration through the issuance of 800.0 million PUC shares at RM0.125 per share. An additional RM7.5 million in cash will be payable once Alevate Capital and Alevate Solutions achieve a Profit Before Tax ("PBT") of RM16.0 million from 1 July 2024 to 30 June 2025. The remaining balance will be subject to achieving a further profit guarantee milestone of RM32.0 million in PBT from 1 July 2024 to 30 June 2026.
Commenting on the acquisition, Mr. Cheong Chia Chou, Group Managing Director and Chief Executive Officer of PUC said, "These acquisitions represent a significant step forward in our strategy to enhance our technology capabilities and market presence. By integrating Alevate’s expertise in Fintech, we are poised to deliver comprehensive solutions that cater to the evolving needs for our end users. The profit guarantee and expected revenue growth underscore our commitment to creating shareholder value."
Mr. Tham Lih Chung, Director and Chief Executive Officer of Alevate Capital and Alevate Solutions, added, "We are excited about joining forces with PUC. This partnership allows us to leverage our combined strengths in Fintech and Martech to offer even more innovative and integrated solutions to our clients. Together, we aim to drive significant value for our stakeholders and create a robust technological ecosystem. By enhancing PUC’s potential after joining forces, we also aim to support the Government of Malaysia in cultivating more unicorns in locally."
Looking ahead, PUC remains highly optimistic about its performance prospects. The Company anticipates improved revenue streams with the integration of newly acquired entities and the formation of new partnerships. PUC is committed to expanding its network of business partners and securing new business opportunities, including potential regional markets, to attain a sustainable and profitable position for the Company.
