Abelco Investment Group AB (publ) Enters Term Sheet to Acquire Cloudaron Pte Ltd and DACS Network Solutions

Abelco Investment Group AB (publ) (“Abelco” or the “Company”) has signed a non-binding term sheet (the “Term Sheet”) with Cloudaron Group Berhad, a company listed in Malaysia, regarding the potential acquisition of 100% of the shares in Cloudaron Pte Ltd and DACS Network Solutions Sdn Bhd (together, the “Target Companies”). The indicative value is approximately EUR 7.8 million (SEK 89.7 million), subject to due diligence, final terms, and approvals.

Background

Abelco’s Board has evaluated various strategic options and identified this acquisition as the most promising route to enhance shareholder value and accelerate growth in Southeast Asia. The transaction supports Abelco’s strategic pivot towards AI, cybersecurity, and digital infrastructure.

About the Target Companies

Cloudaron Pte Ltd (Singapore) develops digital media software and acts as an investment holding company. DACS Network Solutions Sdn Bhd (Malaysia) focuses on IT and telecom hardware distribution. Both companies operate in the enterprise digital services and infrastructure space.

Strategic Rationale

The acquisition will expand Abelco’s footprint in Southeast Asia, adding scale, strong customer relationships, and capabilities in cloud services and IT infrastructure. It also unlocks new growth avenues with established clients in banking, tech, and government sectors.

The Term Sheet

The deal is intended to be settled entirely in new Abelco shares, at an indicative price of SEK 0.005 per share, implying approximately 17.94 billion shares issued. Final terms will be set in the definitive agreement. To ensure governance integrity, common director Gan Nyap Liow has recused himself from all transaction-related decisions.

Indicative Timeline

The Term Sheet includes a 90-day exclusivity period. Completion is conditional on approvals in Sweden, Malaysia, and Singapore, as well as a waiver from the Swedish Securities Council. The EGM, share issue, and registration are expected in H2 2025.

Kin-Wai Lau, CEO and Board Member of Abelco, says:

“We are excited about the potential acquisition of Cloudaron Pte Ltd and DACS Network Solutions Sdn Bhd, as it marks a significant step in expanding Abelco’s presence in the rapidly evolving AI and cybersecurity infrastructure landscape.”

Termination of Previous LOI

In light of this new direction, Abelco has terminated the previously announced letter of intent with Iron Branch Invest AB and ANTCO Investment Group AB (published 15 April 2025).