Declout

Declout: 77.1%-owned subsidiary, Procurri Corp, entered agreement to purchase Verity Solutions Sdn Bhd for $3.5m via an issue of 7.3m new Declout shares at $0.2055 each and 1,890 new shares in Procurri Corp at $1,079.37 apiece. The acquisition is expected to strengthen Procurri's reputation as one of the market leaders in the IT asset recovery and independent maintenance services space and enable the group to achieve greater economies of scale. Upon completion of the proposed acquisition, Declout's shareholding in Procurri Corp will be reduced to 70.9%. Proforma NTA/share will be reduced 10.3% to 5.68¢, while EPS will increase 6.5% to 0.49¢. Verity provides a wide range of hardware maintenance and professional services offerings for enterprise data centres in Singapore, Malaysia and Indonesia. As at 31 Dec 2013, Verity's NAV stood at RM2.3m and recorded a full year net profit of RM0.8m.