CEKD Berhad (KLSE:CEKD) entered into an agreement to acquire an 82% stake in Worldwide Die Cutting Mould Sdn Bhd from Tham Choon Sarn for MYR 6.2 million on July 5, 2022. Under the terms, Berhad will acquire 410,003 ordinary shares. A refundable deposit will be paid by CEKD of MYR 0.62 million upon agreement and remaining amount of MYR 5.6 million will be paid 30 days after unconditional date of agreement.

The deal will be funded by internally generated funds from current business operations of the CEKD. If Tham Choon Sarn refuses, neglects or fails to sell, complete the sale or Worldwide commits any continuing or material breach of any of its obligations, then they will refund the deposit in full or any sum paid or released and pay an additional sum equivalent to 10% of the purchase price as agreed liquidated damages within seven days from such notice of termination. If CEKD fails to pay the remaining purchase price or any other monies due and payable any breach of any of the terms, it will pay 10% of the purchase price representing MYR 0.62 million as liquidated damages and thereafter refund all other monies paid.

In the year ending on August 31, 2021, Worldwide Die Cutting Mould had net assets of MYR 5.7 million and profit after tax of MYR 1.4 million. The deal is subject to approval by Worldwide Die Cutting Mould's board and shareholders, by regulatory authorities, satisfaction of due diligence. The deal is expected to close in first quarter of 2023.