Rev Asia inks MoU in bid to regularise GN2 condition

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KUALA LUMPUR (July 30): Rev Asia Bhd signed a memorandum of understanding today with its largest shareholder Catcha Group Pte Ltd to look into acquiring a majority stake in a foreign group. 

The MoU is in respect of the “proposed acquisition of a majority interest in a foreign-owned group of companies with foreign based operations,” Rev Asia said in a filling with Bursa Malaysia. 

It is part of a plan to regularise Rev Asia’s Guidance Note 2 (GN2) condition so it could maintain its listing status, the group added. 

“The MoU allows the parties to negotiate exclusively for at least a period of three months and sets out the understanding and intention in respect of the proposed acquisition,” Rev Asia said. 

The MoU is not expected to have any material effect on the group's issued share capital, substantial shareholders, net assets, gearing or earnings, it said. 

“The financial effects of the proposed acquisition can only be determined upon the signing of a definite agreement,” the filing added.

Last year, Rev Asia disposed its 70%-held entity Rev-Asia Holdings Sdn Bhd to Media Prima Bhd for a cash consideration of RM73.5 million. 

Rev Asia is required to submit a proposal to Bursa Malaysia for the acquisition of a new core business and received the approval from Bursa Malaysia by Aug 3. 

It was classified as a cash company pursuant to Rule 8.03 and Guidance Note 2 of the ACE Market listing requirements of Bursa Securities on Aug 3, 2017. 

The counter closed unchanged today at 28.5 sen, bringing a market capitalisation of RM 38.37 million.