Seal Incorporated Berhad (KLSE:SEAL) entered into a conditional share sale agreement to acquire Daiman Majumas Sdn Bhd from Mutiara Waterfront Habitats Sdn Bhd and Mutiara Regal Sdn Bhd for MYR 17 million on January 1, 2022. Seal Incorporated will acquire 100 ordinary shares. The consideration will be paid as combination of cash payment of MYR 5 million and issuance of 40.7 million new Seal shares at the issue price of MYR 0.295 per consideration share. The Company intends to fund the Cash Consideration of MYR 5 million via internally generated funds. Upon completion of the transaction, Mutiara Waterfront Habitats will become wholly owned subsidiary of the company. The transaction is subject to due diligence, third party approvals, government or regulatory body or relevant competent authority having jurisdiction over the transactions contemplated, listing of consideration shares in the Bursa Securities Exchange and receipt of valuation report. The total estimated costs which may be incurred by the SEAL Group of MYR 166,627,400 (i.e, which include the Purchase Consideration of MYR 17,000,000, estimated reclamation cost for the Site of MYR 109,770,000 and Cash Consideration to PDC of MYR 39,857,400) represents a discount of MYR 37,444,600 or 18.35%, to the 80% of the market value of the Developer Land (assumed reclaimed) of MYR 204,072,000 in view of Daiman's 80% shareholding in MWH. Transaction is expected to be completed in 3rd Quarter of 2022. As on March 21, 2022. an additional listing application in relation to the proposed acquisition has been submitted to Bursa Securities. As of April 5, 2022, Bursa Securities had resolved to approve the listing and quotation of up to 40,677,966 Consideration Shares to be issued as part of consideration and Seal Incorporated or TA Securities to furnish Bursa Securities with the certified true copy of the resolutions passed by the shareholders at extraordinary general meeting approving the transaction. As on May 30, 2022, SEAL and Mutiara Waterfront, Mutiara Regal mutually agreed to extend the fulfilment date of the conditions precedent by another 3 months i.e. 31 August 31, 2022. As on August 30, 2022, SEAL and Mutiara Waterfront, Mutiara Regal mutually agreed to extend the fulfilment date of the conditions precedent by another 3 months i.e. 30 November 2022. As on September 21, 2022, Seal Incorporated has submitted an application to Bursa Securities seeking its approval for an extension of time of up to April 4, 2023 to complete the issuance of consideration shares. . As on October 5, 2022, SEAL and Mutiara Waterfront, Mutiara Regal mutually agreed to extend the fulfilment date of the conditions precedent until March 31, 2023.


TA Securities Holdings Berhad acted as financial advisor to Seal Incorporated.