Malaysia-based technology firm HeiTech Padu has terminated its plan to acquire 30 percent stake in Islamic payment firm Souqa Fintech.

HeiTech Padu said in a bourse filing that its wholly owned subsidiary Synergy Grid Sdn Bhd had on 7 October, 2024 sent out notice of recission under Clause 3.3 of the share subscription agreement dated 26 September, 2024.

Accordingly, the SSA shall no longer be in force and effect with immediate effect.

“The rescission of the SSA is not expected to have a material impact on the earnings and net assets of the company and its subsidiary for the financial year ending 31 December, 2024,” the firm said.

It also said the board, after having considered all aspects, is of the opinion that the rescission is in the best interest of the company.

Earlier in September, Heitech Padu has proposed to acquire 30 percent stake in Souqa Fintech for MYR 16.17 million ($3.94 million).

It said Souqa Fintech will utilize the proceeds from the subscription for hiring key talents such as technologists, compliance personnel, fintech experts, and shariah product experts; developing payment partnerships; upgrading technology to improve core banking systems; trade debt settlement; trade advertising, marketing, trade shows, training and seminars; new business development and other expenses.

It noted this acquisition is part of HeiTech Padu’s pivot strategy to go deeper into the digital realm while complimenting the traditional contracting business.

HeiTech Padu acquires 30% stake in Islamic payment firm Souqa Fintech for $3.94M