MobilityOne’s M1 Malaysia completes 49% equity acquisition of Sincere Acres

MobilityOne (AIM: MBO) said that its wholly-owned subsidiary, M1 Malaysia, has finalized the acquisition of a 49% equity stake in Sincere Acres Sdn Bhd (Sincere). This significant development, originally revealed on September 29, 2023, marks a major stride for the e-commerce infrastructure payment solutions and platform provider.

As part of the acquisition agreement, M1 Malaysia has made an initial cash payment of RM2.0 million (£0.348 million) to the Vendor, United Flagship Development Sdn Bhd. The remaining balance of RM28.0 million (£4.869 million) for the Second Tranche is scheduled for payment by M1 Malaysia no later than March 8, 2024. It is expected that the Group will utilize M1 Malaysia’s existing cash resources for this purpose.

In the event of any delay in payment beyond the Second Tranche Payment Date, an interest charge of 10% per annum will be imposed. However, there’s an incentive for timely payment, as the outstanding amount for the Second Tranche, including any interest, will decrease by RM1.0 million (£0.174 million) if paid by the Extended Second Tranche Payment Date, which can be extended for up to an additional 6 months.

Sincere Acres Sdn Bhd, the focus of this acquisition, is an investment holding company. It owns a 100% equity stake in Hati International Sdn Bhd (Hati), forming the Sincere Group. Hati specializes in healthcare information systems in Malaysia, emphasizing healthcare software development and information technology. Leveraging cloud service platforms and software solutions, Hati has cultivated a product suite encompassing hospital information systems, clinical information systems, business intelligence platforms, and Internet of Things (IoT)/Artificial Intelligence (AI) enabled solutions.