Catcha Group’s Rev Asia has proposed an acquisition of a 60% stake in solutions integrator Orissa Wicomm for a total purchase consideration of up to RM12.4 million. This comes after Rev Asia initially declined an extension of its Memorandum of Understanding with Catcha to acquire a foreign-owned group of companies with foreign-based operations.
Orissa Wicomm is a solutions integrator for the telecommunication and industrial sectors and has a presence in Kuala Lumpur and Manila. In a bursa filing, the proposed acquisition entails the acquisition by Rev Asia of about 1.08 million sale shares in Orissa Wicomm. In accordance to the term sheet, Rev Asia will also extend an initial secured loan of RM2 million in cash to Orissa Wicomm once the acquisition is finalised. The secured loan to be extended to Orissa Wicomm will be utilised for working capital purposes, the case filing said.
In addition, Rev Asia has to pay Orissa Wicomm RM4 million on top of the RM2 million loan under the first payment. As part of the agreement between both companies, Rev Asia will have to pay RM3.2 million to Orissa after signed and unqualified audited financial statements for financial year ending 31 December 2020 of Orissa Wicomm has been produced. This is also required for submitting the following year’s financial statements. However, to be entitled for the payout, Orissa Wicomm has to record a net profit after tax no less than RM2.5 million.
Rev Asia is currently wholly owned by Media Prima, after a RM105 million acquisition in 2017. According to the deal, REV Asia’s portfolio will be incorporated into Media Prima’s integrated media platforms. Speaking to A+M at the time, Patrick Grove, group CEO of Catcha Group said the rapid growth of digital consumption in Southeast Asia is an indication of the immense opportunity available, in which it also led to the company in identifying Media Prima Digital as a strategic partner in taking it to the next level.
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