Thursday 28 Mar 2024
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KUALA LUMPUR (Aug 7): Axiata Group Bhd's unit, Adknowledge Asia Pacific Pte Ltd (APAC), is buying out Komli Asia Holding Pte Ltd (Komli), an Indian-based digital media technology firm, for US$11.25 million (RM44.08 million) cash.

In a filing with Bursa Malaysia today, Axiata said APAC had entered into a Sale and Purchase Agreement (SPA) with Komli Media Inc today, for the proposed acquisition.  

On rationale, Axiata said the acquisition is a compelling strategic opportunity for APAC, as it enables the subsidiary to skip past the formative stage of its business plan, and scale up its presence and operations in South East Asian region.

"Komli Asia Group brings with it a geographically diversified revenue and provides a strong strategic fit across digital advertising verticals, such as social, video, display and mobile.  

"It also brings in an experienced and deployed talent base of more than 100 sales, ad-ops and other personnel with strong reputation in the region, with deeply entrenched relationships with premium publishers and advertisers," it added.  

According to Axiata, Komli was founded in 2006 in India, and is the Asia Pacific's leading digital media technology platform, specialising in digital marketing, performance advertising, social media, brand solutions/advertising, search marketing and video solutions.

Komli was a US-incorporated company with its headquarters in Mumbai, India. It has offices across India and Asia Pacific region.

It also has operations in the South East Asian markets, such as Hong Kong, Thailand, Singapore and Malaysia. The operations here are carried out through subsidiary and associates companies held by Komli Asia (Komli Asia Group).

Komli Asia is a private limited company incorporated in Singapore, the filing stated.  

Axiata said the purchase consideration will be funded through internally-generated funds.

Shares in Axiata (fundamental: 0.85; valuation: 1.1) fell 14 sen or 2.28% to close at RM6 today, for a market capitalisation of RM53.43 billion.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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