The technology company HeiTech Padu, based in Malaysia, has called off its intention to buy a 30% share in Souqa Fintech, an Islamic payment company.
In a bourse filing, HeiTech Padu stated that Synergy Grid Sdn Bhd, its wholly owned subsidiary, had sent out a notice of recission on October 7, 2024, in accordance with Clause 3.3 of the share subscription agreement dated September 26, 2024.
As a result, effective immediately, the SSA will no longer be in force and effect.
“The rescission of the SSA is not expected to have a material impact on the earnings and net assets of the company and its subsidiary for the financial year ending 31 December, 2024,” the firm said.
It added that the board believes the revocation is in the best interests of the business after taking into account all relevant factors.
Heitech Padu made a proposal earlier in September to pay MYR 16.17 million ($3.94 million) for a thirty percent stake in Souqa Fintech.
It stated that Souqa Fintech will use the subscription revenue to hire key personnel, including compliance officers, technologists, fintech experts, and shariah product experts; to develop payment partnerships; to upgrade technology to enhance core banking systems; to settle trade debts; and to fund trade advertising, marketing, trade shows, training, seminars, new business development, and other expenses.
It was mentioned that HeiTech Padu is utilizing this acquisition as part of its pivot strategy to complement its traditional contracting business and venture further into the digital realm.
