KUALA LUMPUR: MMM Group Bhd is acquiring outdoor advertising firm EDSB Outdoor Sdn Bhd for RM16 million, as part of its Practice Note 17 (PN17) proposed regularisation plan.
In a filing with Bursa Malaysia, the company said it has entered into a heads of agreement (HOA) with EDSB owners Chong Yoke Lai and Gan Soon Choon, who each holds a 70 per cent and 30 per cent interest in the company.
MMM, which will pay RM14 million in cash and RM2 million in new shares, said Chong and Gan have undertaken to provide a profit guarantee of RM2 million annually for three consecutive financial years, commencing from the year in which the definitive share sale agreement is executed.
It added that the acquisition is subject to conditions, including board approval, completion of due diligence, agreement on valuation by an independent valuer and approvals from shareholders and regulators as part of its proposed regularisation plan.
“The execution of the HOA is not expected to have any material effect on the earnings, net assets and gearing of the company for the financial year ending March 31, 2026.
“Nonetheless, the company expects a positive contribution to its earnings in the future should the proposed acquisition be finalised and successfully completed,” it said.
MMM said Chong and Gan will remain as directors of EDSB upon completion and continue their current roles in managing day-to-day operations.
The HOA will be effective for six months from Aug 21, or until the signing of a definitive share sale agreement, unless mutually extended or terminated.
© New Straits Times Press (M) Bhd
