Kronologi Asia to buy Hong Kong-based Quantum Solace for up to RM45m

PETALING JAYA: Enterprise data management firm Kronologi Asia Bhd proposes to acquire Quantum Storage (Hong Kong) Ltd for up to RM45 million.
The group told Bursa Malaysia today that the acquisition sum will be satisfied via a combination of the issuance of up to 40.82 million Kronologi Asia shares at the issue price of 98 sen per share and cash paymnent of up to RM5 million.
Quantum Storage is engaged in the enterprise data management infrastructure technology business providing data storage, protection and archival solutions to enterprises. It is based in Hong Kong and Taiwan and it supplies products to customers in Hong Kong, Taiwan and elsewhere.
The vendor, Law Chee Yii, warrants to Kronologi Asia that Quantum Storage will achieve a profit after tax (PAT) of US$1.2 million based on Quantum Storage’s audited accounts for FY17.
Kronologi Asia is of the view that the profit warranty of US$1.2 million (RM5.08 million) for FY17 is reasonable and realistic after taking into consideration Quantum Storage’s unaudited PAT of US$580,000 for six months of FY17, as well as its prospects.
Kronologi Asia plans to fund the cash portion of up to RM5 million via the proceeds raised from its private placement that was completed on Aug 25.