KUALA LUMPUR (March 14): Government e-services provider Pertama Digital Bhd (KL:PERTAMA) plans to acquire 80% stakes in two companies, D-Ron Singapore Pte Ltd (D-Ron SG) and D-Ron Malaysia Sdn Bhd (D-Ron MY), for RM106.12 million in cash.

These companies specialise in information technology and surveillance hardware distribution, as well as related services in Singapore and Malaysia.

The acquisition is part of Pertama Digital’s regularisation plan, which it failed to submit by the Feb 9, 2025 deadline as required by Bursa Malaysia.

The deal includes the purchase of D-Ron SG for RM101.14 million (S$30.41 million) and D-Ron MY for RM4.99 million from three vendors.

The vendors have guaranteed a combined profit of RM32.56 million (S$9.79 million) for FY2025 and FY2026. Pertama Digital also has the option to acquire the remaining 20% stake in both companies later.

The acquisition will be fully funded by Pertama Digital’s internal funds and requires approvals from Bursa Malaysia, the Securities Commission and shareholders.

The deal is subject to due diligence, expected to be completed in three months.

In August 2022, Pertama Digital triggered paragraph 8.03A(2)(a)(b) of the Main Market Listing Requirements after selling its textile business, Be Top Group Ltd, for RM70 million, as part of a shift to focus on digital services. This move required the company to file a regularisation plan.

When the company missed the Feb 9 deadline to submit its regularisation plan, the regulator issued a notice asking why the company should not be removed from the stock exchange.

On Friday, Pertama Digital submitted a written representation to Bursa Malaysia listing the reasons why its securities should not be removed from the official list of Bursa Securities.

Pertama Digital, in a statement released earlier, reaffirmed its commitment to compliance, governance, and sustainability. The company said it remains confident in its strategic direction and its ability to create value for stakeholders while strengthening Malaysia's digital and financial ecosystem.

"Our submission to Bursa Malaysia today reflects our commitment to transparency, regulatory compliance, and the continued execution of our strategic roadmap,” said Pertama Digital group chief executive officer Lim Nasrul Halim in a statement on Friday.

“We are confident in the strong foundations we have built and the forward momentum of our business, which is focused on delivering innovative and impactful digital solutions for Malaysia,” he added.

Pertama Digital is expanding its business with the proposed acquisition of D-Ron SG and D-Ron MY to enhance digital security and infrastructure.

It said its collaboration with Infobip Asia Pacific Sdn Bhd also aims to improve government-to-citizen digital engagement, while its neo-banking initiatives, KOCEK and BizKecil, promote financial inclusion for small traders and underserved communities.

The statement said the company is well-positioned to drive digital innovation in Malaysia with a clear strategy direction, strong financial position, and solid investor confidence.

Pertama Digital closed unchanged at 5.5 sen on Friday, giving it a market capitalisation of RM24 million. The company has lost almost 73% of its value year-to-date.

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Pertama Digital seeks 12-month extension to submit regularisation plan
Pertama Digital gets Bursa show-cause notice over failure to submit regularisation plan
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