Thursday 28 Mar 2024
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KUALA LUMPUR (June 16): Internet media company Rev Asia Bhd says its core business will remain in the technology sector after the sale of its 70%-owned digital media subsidiary to Media Prima Bhd.

In May this year, Rev Asia sold its subsidiary Rev Asia Holdings Sdn Bhd (RAHSB) to Media Prima for RM105 million, thereby divesting its entire stake in the digital media arm.

"Our focus will still be in the technology business [moving forward] after the sale of RAHSB is completed," Rev Asia independent, non-executive chairman Datuk Larry Gan Nyap Liou told reporters after the group's annual general meeting today.

"We expect the sale to be completed in about two months' time, during the third quarter of this year, and shortly after that we will award [our shareholders] with the proposed dividend of 44 sen per share," he added.

After the sale is completed, Gan said the group will use the proceeds from the sale to focus on acquiring new businesses.

"We should have between RM7 million [and] RM8 million [cash in hand] which we will use to acquire new businesses via mergers and acquisitions or through building [a new company] from a blank [slate]," he said, adding that the company will still focus on its Internet media platform.

Gan added that it would be difficult to give an accurate amount of capital expenditure needed to acquire the new businesses; however, he said the group will consider doing a rights issue, or a share placement exercise to raise further funds.

He said the group is already eyeing merger and acquisition opportunities and is hoping to secure them by the end of this year.

Meanwhile, Gan addressed speculations that the group may enter into the property development sector with its 65.99% substantial shareholder Catcha Group Pte Ltd to develop the Kuala Lumpur Internet City (KLIC) in Bandar Malaysia.

Catcha Group has been appointed as the master developer of the KLIC project, which is to be the main digital hub of the Digital Free Trade Zone here.

"Catcha Group, as our substantial shareholder, [may or may not be] considering involving Rev Asia as a participant in the KLIC project; however, [no firm plans are in place]," Gan said.

Gan could not comment on the capacity in which Rev Asia will participate in the project, as the group is only on the preliminary stages of discussion with Catcha Group.

 

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