Insas buys 19.9% stake in Diversified Gateway

This article first appeared in The Edge Financial Daily, on November 3, 2017.

Insas Bhd has acquired a 19.91% stake in Diversified Gateway Solutions Bhd (DGSB) via direct business transaction from Omesti Bhd for RM12.83 million cash or 4.75 sen per DGSB share.

In a filing with Bursa Malaysia yesterday, Insas said the acquisition of 270 million shares in DGSB was made through its wholly-owned subsidiary Insas Technology Bhd. Insas said the acquisition is expected to have synergistic benefits as both Insas Technology and DGSB operate in the business of information technology.

“Insas Technology was one of the founding shareholders of Bursa-listed Inari Amertron Bhd and together with Insas, Insas Group holds 19.82% of the issued share capital of Inari,” it added.

Based on the audited financial statement for the financial year ended March 31, 2017, the net assets of DGSB amounted to RM44.48 million and its net profit stood at RM416,603.

Insas said the purchase price of 4.75 sen per DGSB share represents a premium of 0.21% to the five-day volume weighted average price of DGSB shares.