KUALA LUMPUR (Oct 7): HeiTech Padu Bhd (KL:HTPADU) has terminated its agreement to acquire a 30% stake in Souqa Fintech Sdn Bhd, less than two weeks after entering into the share subscription agreement (SSA).

In a filing to the stock exchange on Monday, the technology services provider said its wholly owned subsidiary Synergy Grid Sdn Bhd had issued a notice of rescission “under clause 3.3 of the SSA”, rendering the agreement null and void with immediate effect.

However, HeiTech Padu did not provide details regarding clause 3.3 of the SSA.

“The board, having considered all aspects, is of the opinion that the rescission is in the best interest of the company,” the filing noted.

The company also emphasised that the rescission of the SSA is not expected to have a material impact on its earnings, net assets, or those of its subsidiary for the financial year ending Dec 31, 2024.

To recap, on Sept 27, HeiTech Padu announced that Synergy Grid was acquiring a 30% stake, equivalent to 10.78 million shares, in privately held Souqa Fintech for RM16.17 million, or RM1.50 per share.

The acquisition aims to expand further into the fintech industry, particularly within the Islamic-based e-commerce ecosystem, alongside its existing conventional fintech solutions, HeiTech Padu said at the time.

Souqa Fintech is an integrated online payment platform that owns the Islamic payment gateway PayHalal.

HeiTech Padu planned to fund the investment with RM11 million in cash, while the remaining RM5.17 million would be settled through invoices detailing services required by Souqa Fintech.

According to the filing on Sept 27, Souqa Fintech is 58.29% owned by Asad Capital Sdn Bhd, while Crescent Capital Sdn Bhd holds 16.7%.

Notably, Crescent Capital is controlled by Mirzan Mahathir, the eldest son of former prime minister Tun Dr Mahathir Mohamad.

Just days after HeiTech Padu announced its acquisition of Souqa Fintech, Asad Capital reportedly said that Mirzan Mahathir had exited the company, following Asad Capital’s purchase of 4.19 million shares, or a 16.67% stake in Souqa Fintech, previously held by Crescent Capital Sdn Bhd.

HeiTech Padu’s shares rallied past RM4 for the first time last Friday (Oct 4), prompting an unusual market activity query from Bursa Malaysia. In response, the company stated that it was unaware of any corporate development that caused the spike in its share price.

At Monday’s close, HeiTech Padu’s shares had fallen by 10 sen or 2.43% to settle at RM4, giving the company a market capitalisation of RM445.39 million. Year-to-date, the stock has risen by 354%.