Catcha Digital unit acquires 60% stake in digital advertising firm Framemotion for RM37.32mil

KUALA LUMPUR: Catcha Digital Bhd's wholly-owned subsidiary iMedia Asia Sdn Bhd has proposed to acquire 600,000 shares representing 60% equity in digital

media advertising solutions provider Framemotion Sdn Bhd from shareholders Pua Yin Chye and Tan Eng Hong for RM37.32mil cash.

The stake will be purchased from Pua Yin Chye and Tan Eng Hong, who hold a 70% and 30% stake in the company respectively. Following the disposal, Pua will have a 28% stake and Tan, a 12% stake, in the company.

In a bourse filing announcing the terms of the deal, Framemotion will undertake a pre-transaction restructuring, which includes the acquisition of 100% equity interest in Framemotion Pte Ltd, a dormant company incorporated in Singapore, from the Framemotion vendors for a yet-to-be-determined consideration amount.

Framemotion will also dispose of a property in Shah Alam to Karestar Resources Sdn Bhd at net book value, and dispose of non-operating company vehicles to Tan Eng Hong and Pua Yin Chye at net book value.

The pre-transaction restructuring is expected to be completed by the third quarter of the year.

According to the filing, Framemotion recorded a profit after tax of RM7.01mil on revenue of RM37.41mil in the financial year ended Dec 31, 2023. The company had total assets of RM35.26mil and net assets of RM32.14mil as at the financial year-end.