KUALA LUMPUR (Feb 3): Revenue Group Bhd (KL:REVENUE) and Datasonic Group Bhd (KL:DSONIC) have mutually agreed to extend the negotiation period regarding the 51% stake in Innov8tif Holdings Sdn Bhd, the duo announced in a joint bourse filing.
The conditional period in the share sale agreement has been amended to five months from the date of signing. As a result, the conditional period has now been extended by another two months to April 3, according to the bourse filing.
The extension allows both companies more time to fulfill the conditions precedent stipulated under the SSA, which relates to the acquisition of a 51% stake in Innov8tif from Revenue Group for RM40 million cash, the filing said.
Innov8tif, a two-year-old technology firm, specialises in digital ID verification solutions, including e-KYC (electronic Know-Your-Customer), e-KYB (electronic Know-Your-Business), and anti-fraud processes, as well as mobile biometric authentication.
This acquisition is seen as a key strategic move for Datasonic, aimed at enhancing its existing portfolio of information and communication technology (ICT) solutions with Innov8tif’s cutting-edge digital onboarding technologies, Datasonic said previously.
Should the acquisition materialise, Datasonic will be the fifth public-listed company that is involved with Innov8tif in less than five years. The vendor Revenue Group bought the 51% stake in Innov8tif from Hong Seng Consolidated Bhd for RM36 million, cash in May 2023. Hong Seng sold the stake 10 days after it took over from Innov8tif Consortium Sdn Bhd for RM30.9 million in cash as well, it made a RM5.15 million gain.
Innov8tif’s remaining 49% equity is held by Innov8tif Consortium Sdn Bhd, which counts among its shareholders several notable figures, including Law Tien Soon, Lee Chin Seong, Soh Peng Nam, Law Seeh Key, and ACE Market-listed Securemetric Bhd (KL:SMETRIC). Law Seeh Key is also the CEO of Securemetric, a digital security solutions provider.
Datasonic's share price closed unchanged at 39.5 sen, valuing the company at RM1.17 billion. Meanwhile, Revenue Group was flat at 12 sen, giving the company a market capitalisation of RM73 million.
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