Sino Hua-An acquires stake in data analytics, systems integration firms for RM27m

KUALA LUMPUR (April 23): Sino Hua-An International Bhd (SHIB) has entered into two agreements to acquire the entire stake in MD Labs Sdn Bhd as well as a 70% stake in HumanCapient Consulting Sdn Bhd (HCSB).

According to its filings with the bourse, MD Labs is involved in data analytics and provision of business intelligence solutions, while HCSB is involved in the provision of services in design, planning and implementation of change management programmes, specialising in systems integration projects.

SHIB had entered into a share purchase agreement (SPA) with Abdullah Abbas Wan Mohd Hasni and Mohd Afda Md Yusof for the acquisition of the entire stake in MD Labs, for a total of RM12.5 million in cash.

MD Labs is certified by the Ministry of Finance (MoF) to supply services and products, with a clientele comprising government-linked companies, multinational corporations and government departments.

“The proposed acquisition will further strengthen SHIB’s position as Malaysia’s leading digital enabler following the completion of its acquisition of the Touchpoint Group and allow the group to develop new streams of income to supplement its traditional manufacture and sale of metallurgical coke.

“The businesses of MD Labs are complementary to the digital enabling platform solutions of the TouchPoint Group, which was acquired in December 2019,” it said.

The company also said that the acquisition will allow SHIB to benefit from MD Labs’ established track record and know-how in business intelligence and data analytics.

The acquisition of the firm also comes with a profit guarantee of RM1.5 million per year for two years.

Meanwhile, for the 70% stake in HCSB, SHIB has entered into an SPA with Dr Nik Nazli Ahmad, Jim Irene, Dr Rozhan Othman, Zuriah Abu Bakar and Ahmad Fakhri Hamzah. The shares will be purchased for a total consideration of RM14.5 million.

HCSB is also certified by MoF to supply services and products, with a similar clientele to MD Labs.

The firm is involved in change management, manpower improvement and strategy implementation via digital solutions.

“Demand for this expertise is expected to be higher than ever after the Covid-19 situation, where organisations will be looking to be more efficient and prepared for IR4.0,” said SHIB.

The agreement for the stake acquisition in HCSB includes a profit guarantee of RM2 million per year for two years.

SHIB was unchanged at seven sen, giving it a market capitalisation of RM78.56 million.