Noble Westlink emerges as substantial shareholder of Nexgram

KUALA LUMPUR (Sept 17): Noble Westlink Sdn Bhd has emerged as a substantial shareholder in Nexgram Holdings Bhd, after the latter allocated some 127.33 million shares to the company on Sept 03 for 15 sen a piece, a filing to Bursa Malaysia today showed.

Nexgram said in its filing that Noble Westlink now controls 6.76% stake in the group, after the share allotment.

This follows a share sale agreement (SSA) dated April 30 and a supplemental SSA dated May 30, as settlement of the purchase consideration of its proposed acquisition of Sensorlink Holdings Sdn Bhd.

To recap, Nexgram had on April 28 entered into a Memorandum of Understanding (MoU) with Aw Mun Kong, Ow Mee Eng and Wong Kee Yew, to purchase 70% of the total issued and paid up capital of Sensorlink Holdings for RM28.6 million, which is to be settled via the issuance of 190.67 million new Nexgram shares at an issue price of 15 sen per share to their nominated companies, Noble Westlink and Achiever Energy Partners Sdn Bhd.

Both Noble Westlink and Achiever Energy are 70%-owned by Aw, 20%-owned by Ow, and 10%-owned by Wong.

"Sensorlink will become a 70%-owned subsidiary of Nexgram upon completion of the proposed acquisition, while the remaining 30% equity interest in Sensorlink will continue to be held by the vendors," a filing on April 30 read.

In conjunction with the proposed acquisition, Nexgram and the vendors have also entered into a profit guarantee agreement, where the vendors, as the profit guarantors, shall provide that the net profit for the financial years ending December 31, 2014 and December 31, 2015 shall not be less than RM4.2 million and RM4.5 million respectively.

Shares of Nexgram rose 0.5 sen to close at 14.5 sen today, with 15.15 million shares done.

Written by Gho Chee Yuan of theedgemalaysia.com