The Board of Directors’ meeting of TQM Corporation Public Company Limited (TQM), held on April 28, 2021, has resolved to approve the investment in True Life Broker Co., Ltd. and True Extra Broker Co., Ltd. for the expansion of the business to cover various types of customers and for the increase in the potential growth.
TQM will invest in 51% of the total shares of both companies through the purchase of shares held by the existing shareholders. The total value of the investment will not exceed 270 million baht whereby the source of funds will be from the internal cash flow of the company.
In this regard, the Board of Directors’ meeting has approved the execution of the MOU between the company and the existing shareholders of True Life Broker and True Extra Broker in order to enable the company to conduct the due diligence as well as to proceed the feasibility study of the investment project.
TQM anticipated that the due diligence process will be completed within July 2021. If the company is satisfied with the result of the due diligence, which includes the accounting, financial, and legal aspects, the company will further negotiate with the existing shareholders to enter into the definitive share purchase agreements. However, upon the execution of the MOU, the company shall have no obligation to make any payment if there is any amendment or termination of the MOU.
Moreover, the Board of Directors acknowledged the investment in SUREKRUB.COM Co., Ltd., which engages in the business of management of application on the online platform, through TQM Insurance Broker Co., Ltd. (a subsidiary company which the company holds 99.99% of the shares) by holding 60% of the total shares of SUREKRUB.COM Co., Ltd., with the total investment of not exceeding THB 6 million.
Lastly, the Board of Directors acknowledged the investment in the newly issued ordinary shares in TQD Co., Ltd. (formerly TQLD Co., Ltd.), an associate company, which the company currently holds 40% of the total shares. In this regard, TQD Co., Ltd. increased its registered capital by THB 4 million from THB 3 million to THB 7 million.
The Company invested in 16,000 newly issued shares which were in accordance with the shareholding ratio, in the amount of THB 100 per share, totaling THB 1.6 million. The investment of the company in TQD Co., Ltd. increased from THB 1.2 million to THB 2.8 million whereby the company shall continue to hold 40% of the total shares of TQD Co., Ltd.