KUALA LUMPUR: Technology empowerment company, Sedania Innovator Bhd, has proposed to acquire a syariah-based financial technology (fintech) company, Sedania As Salam Capital (SASC), for RM12 million.

In a statement on Monday, Sedania Innovator said the purchase consideration would be satisfied via RM4 million cash, and RM8 million via the issuance of 25.8 million new Sedania Innovator shares at 31 sen each.

"The RM4.0 million cash payment would be staggered over three tranches -  RM1.0 million in the first tranche and RM1.5 million in the subsequent two tranches upon fulfilment of the profit guarantee," it said.

Sedania Innovator said under the proposed acquisition, SASC would provide a profit guarantee of RM1.5 million per year for the financial years ending Dec 31, 2017 and 2018.

"Since 2010, SASC provides the As-Sidq TM system, a Tawarruq commodity trading system that utilises prepaid telecommunication airtime credit as the traded commodity based on syariah principles," it said.

It said the electronic and fully-automated As-Sidq TM system was currently utilised by 21 financial services companies in Malaysia, including financial institutions and cooperatives, to facilitate Islamic financing to customers.

The As-Sidq TM platform, which focused on processing Islamic financing based on the syariah principles, had secured and published its patent in January 2017, it said.

To-date, it has processed over 300,000 personal financing transactions worth more than RM25 billion. - Bernama