Singapore, 30 July 2026. Catalist-listed Autagco Ltd. has signed a share purchase agreement to buy all of Edge Green Energy Sdn. Bhd. from its founder, Mr Chiong You Kwong. Edge Green provides mechanical and electrical (M&E) services and specialises in medical and general infrastructure projects. It will become a wholly owned subsidiary of Autagco when the deal completes.
About Edge Green
Edge Green was incorporated in Malaysia in 2017 and has run its current business since 2019. Its audited accounts show a profit every year from FY2022 to FY2025. Its latest figures are:
FY ended 30 June 2025 (audited)
- Net profit: RM334,000 (about S$108,000)
- Net tangible assets: RM1.91m (about S$616,000)
9 months to 31 March 2026 (unaudited)
- Net profit: RM50,000 (about S$16,000)
- Net tangible assets: RM1.96m (about S$632,000)
The founder has worked in the electrical works industry for seven years. He is not related to Autagco, its directors or its substantial shareholders.
Deal terms
Price: S$603,500, made up of S$476,000 in cash and S$127,500 in new Autagco shares (25.5 million shares at S$0.005 each). Share price premium: The issue price is about 67% above Autagco’s volume-weighted average price of S$0.003 before the trading halt. Cash funding: The cash portion will come from proceeds of the share subscription Autagco announced in March 2026. Earn-out: Over five years, the founder can earn extra cash each year in which Edge Green’s audited net profit after tax is at least S$250,000. The payment is 35% of net profit minus 10% of revenue for that year. Autagco can hold back the payment until receivables are collected and can claw it back if debts go bad.
Founder commitments:
- Founder stays on as managing director throughout the earn-out period with a 5 year non-compete
- Founder's consideration shares are locked up for 12 months.
- Excluded property: A property Edge Green owns in Sibu, Sarawak, will be sold to the founder before completion, so it is not part of the deal.
Why Autagco is buying
- A ready-made business: Autagco gets an established, profitable business with seven years of supplier and customer relationships.
- Visible future revenue: Edge Green’s secured contracts give a pipeline of future revenue.
- Faster and cheaper than building from scratch: Buying a business with a profit record is quicker and less costly than starting a new one, which would take significant management time and money with no guarantee of profit.
- Less pressure on cash: Paying partly in shares preserves cash.
- Aligned incentives: The earn-out ties the founder’s reward to Edge Green’s performance.
The board also says the founder’s willingness to take shares shows his confidence in Autagco’s plans.
On a pro forma basis, the deal would:
- reduce Autagco’s net tangible liabilities from S$1.94 million to S$1.32 million
- reduce its loss per share from 0.051 cents to 0.046 cents
Next steps
Completion depends on several conditions:
- due diligence
- shareholder approval at an EGM for the share issue and for adding M&E services to Autagco’s business
- SGX approval to list the new shares
- other approvals