Currently, Perak FC, which is competing in the Malaysian Premier League, continues to be shackled with debt issues and player salary arrears accompanying the gloom of the team's training camp.
However, Perak FC's fate will change if XOX Pro Sport Sdn Bhd, a wholly owned subsidiary of XOX Bhd, signs the takeover with Impact Media & Communication Sdn Bhd.
It is understood the share sale agreement will see the 100% equity interest of Perak FC Sdn Bhd purchased by XOX Pro at a price of RM1.
Following XOX's filing on Bursa Malaysia, the purchase price has been made on a 'willing to buy, willing to sell' basis taking into account the loss of Perak FC after excise duty, outstanding debts and difficulties in operating.
XOX explained, Perak FC had an after-tax loss of RM7.1 million as of December 31, 2021 with a net debt of RM3.5 million.
In addition, the company added that the takeover is expected to open up opportunities for them to further expand their ecosystem influence by incorporating soccer into sports. However, it is said that XOX will not incur any extra-term debt and collateral arising from the takeover reserve.
Meanwhile, the takeover of Perak FC will not take effect in the blink of an eye because there are several conditions that need to be fulfilled within 24 months from the date of the share sale agreement.
Among the conditions that need to be met are financial issues as well as regarding the Perak FC law by XOX Pro and Media Impact in paying off debt, which is expected to be completed in the 3rd quarter of 2024.
In summary regarding Imapct Media and Perak FC, the directors of the advertising agency Rehana Mohd Abbass and Mohamad Aimran Razif Roslan have 2,500 issued shares totaling RM2,500 into the squad.
As of midday, XOX Bhd's shares have been traded for 1.5 million with a market capital of RM56.6 million.
