KUALA LUMPUR: Non-bank financial institution Souqa Fintech Sdn Bhd is considering legal action against HeiTech Padu Bhd after a surprise termination of its deal to acquire a 30 per cent stake in Souqa Fintech.
Its chief executive officer Patrick Thevarajah told Business Times that the deal was called off in bad faith.
Patrick said at the time of Bursa Malaysia's announcement yesterday, Souqa Fintech had transferred 7.3 million shares to Synergy Grid, a wholly-owned subsidiary of HeiTech Padu, based on the managing director and deputy executive chairman's promise to pay.
"Whilst waiting for payment Souqa Fintech received a rude surprise," he said.
Just two weeks into the deal, which HeiTech Padu's directors had said was in the best interest of the company, it announced that subsidiary, Synergy Grid had issued a notice Notice of Recission under Clause 3.3 of the Share Subscription Agreement dated Sep 26, 2024, which nullified the agreement.
The announcement comes days after Souqa Fintech said that it had parted ways with substantial shareholder Mirzan Mahathir.
On September 30, Souqa Fintech said Asad Capital had bought 4.19 million shares, or 16.67 per cent, previously held by Mirzan via Crescent Capital Sdn Bhd.
Meanwhile, HeiTech Padu clarified that the acquisition was not approved by its board members during their meeting on Oct 4.
In a filing with Bursa Malaysia, the company said the condition under the Clause 3.1(i) of the share subscription agreement (SSA) could not be fulfilled resulting in Notice of Rescission under Clause 3.3.Clause 3.1(i).
The clause requires HeiTech Padu to get approval from the board of directors to proceed with the deal.
HeiTech Padu noted that the total cost incurred prior to the rescission of the subscription amounted to RM250,000 and that no legal or contractual obligation may arise from the rescission.
HeiTech Padu's share price closed 0.5 per cent or two sen higher to RM4.02 with some 3.62 million units changing hands for a market capitalisation of RM456.53 million.