KUALA LUMPUR (July 20): Rev Asia Bhd, which is selling its digital media arm to Media Prima Bhd, said it is in talks with two companies as part of its plan to expand its business within the digital space in the Asean region.

Chairman Datuk Larry Gan Nyap Liou, who disclosed this today, however declined to identify the two technology-based companies that it is considering to acquire.

"Asean is our playground, we think more opportunities will come from Asean and Malaysia. Rev Asia is in the best place to take all these opportunities," Gan told reporters after the group's extraordinary general meeting (EGM) today.

Rev Asia's board member Patrick Grove added that the digital space in the Asean region is robust.

"Data has shown that as a region, Southeast Asia is now the bigger Internet market compared to America. With the smartphone revolution, there are almost unlimited opportunities that Rev Asia can pursue.

"We just need to figure out what are the right opportunities to pursue, and one of the opportunities will be linked to the Digital Free Trade Zone and Kuala Lumpur Internet City as that is where a lot of the opportunities lie," added Grove.

At the EGM, shareholders approved the group's sale of its subsidiary, Rev Asia Holdings Sdn Bhd, to Media Prima for RM105 million.

Gan said Rev Asia's core business activities will remain in the technology sector following the disposal of the subsidiary, which is involved in advertising and Internet media business.

"Rev Asia will now be looking at some new businesses in technology, and whatever that we decided, it will be technology related. Then we will speak to Bursa (Malaysia) because at the moment we will probably be utilising the cash from the proceeds," he said.

Gan expects the sale to be completed during the third quarter of this year.

"We should have between RM7 million [and] RM8 million [cash in hand] which we will use to acquire new businesses. If we acquire businesses that require a lot of cash, we will call for cash then," he said.

Rev Asia said it would receive RM73.5 million from its sale of the subsidiary, resulting in a one-off gain of RM53.32 million.

Of the proceeds, it expects to pay out RM59 million as dividends to shareholders, while keeping the remainder for working capital (RM6.69 million), incentive payment to selected key employees (RM3.5 million), repayment of RM3.31 million owed to Youth Asia Sdn Bhd, and to pay off other expenses related to the proposed disposal (RM1 million).

Gan said Rev Asia is set to become a "cash company" after the deal and would need to regularise its operations to remain listed.

"We have 12 months to regularise and that is the deadline we look forward to acquire the new businesses," he added.