In consideration of the direction of long-term development, and to consolidate resources, increase economies of scale and improve California Software Company Limited's (Calsoft) competitiveness, the Company, has executed a MOU and necessary agreements with Menakart General Trading LLC, UAE (Menakart) for the acquisition of 55% of the all of the issued and outstanding common shares on fully diluted bases, whereby the Menakart shall become a subsidiary of Calsoft.
Menakart is an e-commerce and full-service loyalty solutions company based in Dubai, UAE founded in 2012, the company initially focused on book sales, before expanding into other product categories such as consumer electronics, fashion, and lifestyle products. The service competes primarily with Amazon's UAE subsidiary, and the domestic rival Awok. Menakart is significantly dominant in the sale of books. Menakart also offering services that include loyalty management, loyalty consulting and other customer retention programs like cashback and cash cards. The loyalty program management revenue model provides for multiple revenue trigger points, including upfront program setup fee, monthly program management fee, and variable revenue linked to the reward redemptions.
Both Calsoft and Menakart are engaged in a basic and preliminary discussion and negotiations wherein the Calsoft is willing to enter into a Share Purchase Agreement (SPA) with Menakart, subject to compliance with the applicable laws and SPA to be executed between the Parties going forward in relation to the Proposed Transaction. This acquisition is expected to close in the third quarter of 2019.
Shares of CALIFORNIA SOFTWARE CO.LTD. was last trading in BSE at Rs.21.4 as compared to the previous close of Rs. 21. The total number of shares traded during the day was 1335 in over 42 trades.
The stock hit an intraday high of Rs. 21.7 and intraday low of 18.9. The net turnover during the day was Rs. 26046.