GHL Systems: RM40m from private placement to finance purchase of Paysys

PETALING JAYA: GHL Systems Bhd will be deploying RM40 million out of the RM84.5 million raised from a private placement exercise, to fund the proposed acquisition of Paysys (M) Sdn Bhd to expedite the process.
The group had previously stated in a circular to its shareholders dated May 16, 2018 that the acquisition will be funded through a combination of bank borrowings and internally generated funds.
"At this juncture, GHL has yet to come to an agreement on the terms of the borrowings with its financiers. To facilitate the expedient completion of the proposed acquisition, the board has decided to utilise RM40 million of the private placement proceeds to complete the proposed acquisition," GHL Systems' board of directors said today.
In April, GHL Systems said it was acquiring payment solutions company Paysys for RM80 million, to solidify its presence as a payment solutions provider in Malaysia.
GHL Systems said it will pay RM40 million cash and issue up to 33.5 million new GHL Systems shares at RM1.1927. The previous allocation of RM84.2 million earmarked for working capital has now been slashed to RM44.2 million.
On Bursa Malaysia today, GHL Systems fell 0.66% to RM1.51 on volume of 141,700 shares.