It has conditionally agreed to acquire the entire issued share capital of EMS Wiring Systems, an established Singapore-based supplier, installer and maintenance provider of communications systems.
The acquisition counts as a reverse takeover, as the vendors of EMS will end up with shares equivalent to 70% of Golden Saint prior to any fund-raising exercise.
Given that the experience of the current board lies in the field of information technology, the change in business should not be that much of a surprise.
On completion of the proposed transaction, there will be a number of new board appointments, including a group finance director and an independent UK-based non-executive director.
Golden Saint said EMS Wiring has a strong client base, including several government agencies and major financial institutions in Singapore.
EMS Wiring has shown year-on-year growth in revenue over the last two years of more than 30% a year.
For the year ended 31 March 2017, EMS Wiring reported a profit before taxation of S$625,721 on turnover of S$5,924,006 and at the end of March had net assets of S$1,970,331, including cash balances of S$1.1mln.
Unaudited interim financial results for the six months ending 30 September 2017 show a profit before taxation of S$380,339 for the period.
Plans to sell diamond assets
The directors believe that there is an opportunity to consolidate the existing EMS Wiring business within its operating areas, but also to capitalise on the networks established in Africa, Asia and South America to expand into a higher tier of owning its own data centres.
As for the artisanal diamond mining assets in Sierra Leone, the company proposes to dispose these to local management in return for an ongoing royalty stream from possible diamond sales.
The company intends to change its name to Golden Saint Technologies.
Trading in the shares of Golden Saint has been suspended, pending publication of an AIM admission document.