Palette Multimedia to acquire 51% equity stake in Genopharma
has signed a term sheet to acquire 51% equity stake in biomedicine and herbal medicine company Genopharma Sdn Bhd.
Upon completion of the acquisition, Palette would issue new shares valued at RM1.53mil. The valuation is based on Genopharma's price earnings (PE) ratio of 5 times of the financial year 2016 (FY16) net profit of RM600,000.
Palette has the call option for the remaining 49% with a valuation based on a PE ratio of 6 times of the net profit over the next three years with a profit guarantee in each year.
The call options after closing of FY17, FY18 and FY19 are 15%...