Catcha Digital completes acquisition of iMedia Asia

KUALA LUMPUR: Catcha Digital Bhd has completed the acquisition of the entire equity interest of iMedia Asia Sdn Bhd for RM43.92mil in cash and shares.

“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 also said it expects to have its Guidance Note 2 (GN2) status lifted after the completion of the final step in its regularisation plan.

“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 company said the final step of the regularisation plan involves a proposed rights issue which may raise up to RM41.04mil.

“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 said he is confident that the integration of the vast reach and capabilities of iMedia will accelerate Catcha Digital to be at the forefront of the digital media arena in Malaysia and eventually, South-East Asia.

“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.

Meanwhile, Catcha Digital chief executive officer Eric Tan said the acquisition of iMedia was “just the beginning” of Catcha Digital.

“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.

Catcha Digital slipped into GN2 status in August 2017 following the sale of its then digital asset, Rev Asia Holdings Sdn Bhd, to Media Prima Bhd for RM105mil.

A listed company is classified as a cash company if its assets consist of 70% or more of cash and short-term investments, or a combination of both.

The company would then have to comply with the obligations under GN2 or face the risk of getting its shares suspended or delisted.

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