Catcha Digital Bhd has finished buying out iMedia Asia Sdn Bhd's whole ownership stake for RM43.92mil in cash and stock.
“Catcha Digital now owns a fast-growing integrated digital media solutions provider, with an extensive portfolio of digital marketing platforms, reaching 12.7 million Malaysians in June 2022 and services over 100 brands spanning across various industries,” it said in a statement.
The group added that after the last phase of its regularisation strategy is finished, it anticipates having its Guidance Note 2 (GN2) status lifted.
“Catcha Digital will have its GN2 status lifted and will continue to execute its strategic plans and explore new opportunities that will drive its growth in the digital and technology industry in South-East Asia.”
The third element of the regularisation strategy, according to the firm, entails a planned rights issue that might raise up to RM41.04 million.
“Catcha Digital has secured an undertaking from its major shareholder, Catcha Group to subscribe for a minimum of RM18mil in the proposed rights issue.”
Catcha Digital chairman Patrick YKin Grove expressed his confidence that Catcha Digital's rapid ascent to the top of the Malaysian digital media scene and eventually South-East Asia will be aided by the combination of the extensive reach and capabilities of iMedia.
“The tremendous growth in profit over the last financial year shows that the team and strategy are executing the strategic plan exceptionally well,” he said.
Eric Tan, the chief executive officer of Catcha Digital, stated that the purchase of iMedia was "only the beginning" for his company.
“We will accelerate our growth and continue pursuing highly accretive investment opportunities that align with our strategic goals.
“Our goal is to attract the best digital and software companies to work with us and consolidate our industry to be the leader in South-East Asia,” he said.
With the sale of its then-digital asset, Rev Asia Holdings Sdn Bhd, to Media Prima Bhd for RM105mil, Catcha Digital lapsed into GN2 status in August 2017.
If cash and short-term investments, or a combination of both, make up 70% or more of a listed business's assets, the company is categorised as a cash company.
The company would then have to adhere to GN2's requirements or risk having its shares suspended or delisted.