Chip Eng Seng Corporation, through its subsidiary CES Edutech, has on July 7 entered into a sale and purchase agreement with Israel firm HackerU Global to dispose of its 41.14% stake in Cybint International.
Under the SPA, Chip Eng Seng will receive a cash consideration of US$8.2 million ($11 million) upon completion of the transaction.
In addition, Chip Eng Seng will be entitled to an additional payment of US$1.35 million in the event that HackerU Global, within two years of the transaction completion, raises funds amounting to US$150 million or it lists Cybint shares through an initial public offering on any stock exchange, including through a merger with Special Purpose Acquisition Company merger (SPAC).
Cybint provides learning and training platforms in relation to cybersecurity education. The remaining interest of the company is held by founder Roy Moshe Zur, who is also disposing the entirety of his shares to HackerU.
As at May 31, Cybint has a net asset value share of approximately 4.4 US cents.
According to Chip Eng Seng, Zur, while sourcing for funding opportunities, received the offer from HackerU to acquire 100% of Cybint’s shares. Rather than remain as a minority shareholder in Cybint, Chip Eng Seng decided to capitalise on the opportunity to make a gain on its investment and completely exit from Cybint.
The company intends to deploy the proceeds from the sale towards new growth areas in the education sector.
The sale is expected to contribute positively to the net tangible assets and earnings per share of the Company for the current financial year ending 31 December 2021.
Shares in Chip Eng Seng closed flat at 45.5 cents on July 7.
