Rev Asia up 2.7% on inking term sheet for Orissa Wicomm stake buy

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KUALA LUMPUR (July 15): Rev Asia Bhd shares rose 2.7% this morning after the firm inked a term sheet to buy a 60% stake in Orissa Wicomm Pte Ltd, a telecommunication and industrial sector integrated solutions provider, for up to RM12.4 million.

At 11.25am, Rev Asia added 0.5 sen to 19 sen for a market capitalisation of RM25.58 million.

The announcement came concurrently with Rev Asia's decision not to extend an initial memorandum of understanding with Catcha Group Pte Ltd to acquire a foreign company with foreign operations.

As it stands, Rev Asia intends to pay RM4 million cash and RM2 million worth of new Rev Asia shares for the acquisition.

The group said the balance RM6.4 million may be satisfied in two tranches of RM3.2 million each, via cash or further new shares in Rev Asia, adding that the mode of payment for the balance will be at its "absolute discretion".