SINGAPORE (Jan 10): Libra Group has revised the aggregate consideration for the acquisition for a 51% stake in Malaysia-incorporated YC Capital Consolidated announced on Oct 10.

Following further discussions between the Libra and 50.002% shareholder Chu Sau Ben who is also CEO of YC Capital, the aggregate consideration for the proposed acquisition has been revised to $12 million from $15 million.

As payment, Libra will issue Chu 93.75 million shares at 12.8 cents each on the completion date. Shares in Libra closed at 14 cents on Wednesday.

Under the revised terms of the acquisition deal, Chu will also get an earn-out incentive of $1.0 million ($0.3million) if the target group's FY18 ended Dec net profits after tax is equal to or more than MYR 7.0 million but lower than MYR 8.0 million.

If the target group’s NPAT for FY18 is equal to or more than MYR 8.0 million, Chu will get $2.0 million as an earn-out incentive.

However, if the target group’s NPAT for FY18 comes below MYR 7.0 million, no earn-out incentive will be paid to Chu.

It has also been agreed that the earn-out incentive fully satisfied by the issuance and allotment of the Libra shares at an issue price of 12.8 cents per share.

YC Capital's business interests include the provision of travel and tour agency services. This is in line with the Libra's growth strategy to expand its business into providing leisure and corporate travel and travel-related services in Asia.

As Chu is deemed to have an interest in Libra, the acquisition deal is considered an interested party transaction requiring the approval of shareholders.