Computer retail group, MSY Technology is set to become a publicly listed entity after being acquired by ASX-listed mining company, Lanka Graphite for $19.8 million.
The acquisition price shifted upwards by $2.3 million since Lanka first announced its intentions to acquire MSY in August last year for $17.5 million.
Since then, the acquisition has satisfied certain conditions, but is still subject to a few more including obtaining all shareholder approvals; receipt of an independent expert’s report and capital raising between $3.5 and $4.5 million.
What the company will look like once it’s listed will be revealed shortly, according to Lanka.
MSY has been around for more than 22 years selling computers, computer parts and software. It has an online store to complement its 28 physical retail outlets across Australia.
The Dandenong-headquartered business generates revenues of about $100 million per year.
In August last year, Lanka said MSY had a “strong future focus on e-commerce growth,” an area that it was keen to ‘shift’ into as it will ‘spin out or divest’ its existing Sri Lankan graphite assets.
“Following the completion of the transaction, the company’s core business activities will shift from graphite exploration to retailing consumer electronics with a key focus on e-commerce growth,” Lanka told shareholders.