KUALA LUMPUR: Souqa Fintech Sdn Bhd, a non-bank financial institution that is being acquired by HeiTech Padu Bhd, has cut its ties with Mirzan Mahathir.
A Souqa Fintech spokesperson today clarified that Mirzan had departed as its shareholder through a share sales agreement between his firm Crescent Capital Sdn Bhd and Asad Capital Sdn Bhd, the former's majority shareholder.
Souqa Fintech, known for its Islamic payment platform as the operator of PayHalal since 2017, is being acquired by HeiTech Padu via wholly-owned Synergy Grid Sdn Bhd.
Asad Capital had bought 4.19 million shares, or 16.67 per cent, previously held by Mirzan via Crescent Capital, raising its ownership to 74.96 per cent from 58.29 per cent previously, Souqa Fintech said in a statement today.
Souqa Fintech chief executive officer Patrick Thevarajah holds a 9.61 per cent stake in the company.
The statement said the move solidified and reinforced Asad Capital's commitment to the growth and development of Souqa Fintech in the fintech market especially following the announcement by HeiTech to acquire 10.78 million new shares in the latter.
"Crescent Capital's decision to depart from Souqa Fintech reflects a mutual agreement between the parties, aligning with its broader business strategies," it added.
Thevarajah told Business Times that Mirzan had left to focus on other business ventures.
He said the exit is being formalised with the Companies Commission of Malaysia (SSM).
On Friday, HeiTech Padu announced that its subsidiary Synergy Grid Sdn Bhd had signed a share subscription agreement (SSA) to buy 10.78 million new shares in Souqa Fintech for RM16.17 million.
The acquisition would be financed using its internally generated funds, and upon completion, Souqa Fintech will become a 30 per cent-owned associate company of HeiTech Padu.
When asked why HeiTech Padu decided to invest in the platform, Patrick explained that Souqa Fintech is a non-bank financial institution regulated by Bank Negara Malaysia and provides the PayHalal merchant payment gateway.
He added that HeiTech Padu is shifting its focus towards cloud services and fintech.
Last week, it was reported that in a surprising turn of events, HeiTech Padu had emerged as the front runner to bag the RM1 billion National Integrated Immigration System (NIISe) contract.
The Edge previously reported that HeiTech Padu had been dropped from the project, which is slated to integrate the border management systems of various agencies of the Home Ministry, in favour of Dagang Nexchange Bhd and Theta Edge Bhd.
It was said, however, that HeiTech Padu had now made a comeback and stood a good chance of winning the contract.
The three were reportedly shortlisted from a group of companies that had submitted proposals last December.
They included Datasonic Group Bhd, Scicom (MSC) Bhd, Bestinet Sdn Bhd, MyEG Services Bhd, Microlink Solutions Bhd, Infomina Bhd, REDtone Digital Bhd and Sapura Group.
HeiTech Padu is the incumbent operator of the NIISe project with its Malaysian Immigration System (MyIMMs), which was implemented in 1993