Thursday 28 Mar 2024
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KUALA LUMPUR (May 6): Rev Asia Bhd, after six months, has today decided to terminate its plan to acquire a 60% stake in telco and industrial sector integrated solutions provider Orissa Wicomm Pte Ltd for up to RM12.4 million.

“On behalf of the board of directors of Rev Asia, TA Securities wishes to announce that the company has vide a letter dated May 6, 2020 notified the vendors that the company proposes not to further extend the extended condition period,” according to a filing with the local bourse today.

The proposed acquisition is part of its regularisation plan to enable the company to regularise the company’s Guidance Note 2 (GN2) condition in order to maintain the cash company's listing status on the ACE Market of Bursa Securities; and to provide the existing shareholders an opportunity to participate in a new core business.

On Nov 8, 2019, Rev Asia entered into a share sale agreement (SSA) with Orissa Wicomm (M) Sdn Bhd, Datuk Dr Syed Muhamad Bin Syed Abdul Kadir, Shobana N Kumarasamy and Nallendran Satturukanasingi in relation to the proposed acquisition of 1.08 million shares in Orissa, which represents a 60% equity interest in Orissa.

This came after it had inked a non-binding term sheet with the respective vendors.

In view of the termination of the SSA, the shareholders’ agreement will also be rescinded, said Rev Asia, adding that the board will deliberate on the company’s next course of action and an announcement will be made in due course.

Untraded today, shares of Rev Asia were last traded at 8.5 sen. This values the company at RM11.44 million.

Read also:
https://www.theedgemarkets.com/article/rev-asia-inks-term-sheet-acquire-orissa-wicomm-rm124m

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