PETALING JAYA: Rev Asia Bhd has proposed to acquire iMedia Asia Sdn Bhd and its subsidiary along with a rights issue with attached warrants for RM10 million, as part of its proposed regularisation plan submitted to Bursa Malaysia.
iMedia is an integrated digital media group focused on content, technology and social influencer marketing with over 15 million visitors.
The group said the purchase consideration will be satisfied fully through the issuance of new ordinary Rev Asia shares on completion.
Should iMedia’s audited net profit after tax achieve its target of RM3 million for FY2021, the group will issue an additional RM30 million in new shares, to incentivise both parties in growing the company’s financial performance over the long-term.
Upon joining REV Asia, iMedia will have access to the capital markets and liquidity to accelerate its acquisition and growth plans with a major emphasis on profitability.
Over the past year, iMedia has expanded its reach in the digital advertising space with the acquisition of four media sites and a social influencer platform.
Rev Asia’s chairman Datuk Larry Gan commented that iMedia is expected to enjoy a tailwind from digital adoption that was accelerated by the Covid-19 pandemic.
“We are extremely excited in taking the first step in working together with the team at iMedia to build a digital media leader again, not just in Malaysia, but in the region,” he said in a press release.
As part of the proposed regularisation plan, the group aims to undertake a renounceable rights issue with attached warrants to acquire Goody Technologies, Nara Media and Moretify and further working capital needs of the company.