Grand-Flo Solution Bhd is acquiring CL Solutions (China) Ltd for HK$25mil or RM10.64mil via issuance of cash and new shares as it seeks to expand its presence into China’s radio frequency identification (RFID) market.

It said part of the acquisition would be financed by cash of RM5.85mil while the balance of RM4.87mil via the issuance of 11.39 million new shares of 10 each at an issue price of 42 sen each.

Grand-Flo had on Wednesday signed a conditional share acquisition agreement with CL Solutions Services Ltd to acquire CL Solutions China.

CL Solutions China develops and markets tracking solutions, with barcode and RFID technologies. It has presence in key locations in Hong Kong, Guangzhou and Shanghai.

Grand-Flo said the proposed acquisition would enable the group venture into the burgeoning China and Hong Kong markets via CL Solutions China, which had strong clientele and distribution networks.

Among the customers were Federal Express, Airport Authority of Hong Kong, Nippon Express HK Ltd, Philip Morris Asia Ltd and Wal-Mart China Co. Ltd.