AcroMeta plans to pay via a convertible loan and by issuing new shares

Engineering firm AcroMeta Group plans to acquire a controlling stake in an entity that holds a sand mining concession in Malaysia.

Under a non-binding MOU signed on Jan 26, AcroMeta plans to acquire a 60% stake in an entity called Inadel Sdn Bhd, which fully owns the rights to a sand concession area offshore of Negeri Sembilan.

The concession covers an area of about 12.2 sq km and located 5.6 nautical miles from Tg. Tuan coastline. 

The vendors are Tunku Shahirzade Binti Tunku Azwil and Tengku Dara Binti Tengku Abd Razak.

AcroMeta plans to pay for the acquisition via two parts. First, it will extend a convertible loan of RM2 million to Inadel which gives AcroMeta the right to convert the convertible loan into 50,000 new shares of Inadel, or 20% of the total.

Next, via a call option, AcroMeta will then acquire 100,000 new Inadel shares, or 40% of the total, worth RM4 million. AcroMeta plans to pay for this by paying not more than 12 million new shares at 10 cents each. 

"The group has been actively seeking for new business opportunities and believes that the proposed investment presents an opportunity to expand its business portfolio and achieve greater diversification," says AcroMeta.

AcroMeta shares last traded at 3 cents.