KUALA LUMPUR (Dec 1): Catcha Digital Bhd (KL:CATCHA) on Monday announced the termination of its plan to acquire a 51% stake in DS Services Sdn Bhd, one of eight recently announced deals that is not going through.
In a bourse filing on Monday, the company said its subsidiary iMedia Asia group and the vendors of DS Services had mutually agreed to end the sales and purchase agreement (SSA) via a termination letter dated Dec 1. The shareholders’ agreement tied to the deal has also been terminated.
Catcha Digital had first unveiled the proposed acquisition, which involved acquiring DS Services for RM22.95 million, in March. The payment was to be made in three tranches over 24 months, contingent on the company achieving a profit after tax of RM4.5 million in the first year after completion and RM4.2 million in the following year.
On Aug 26, 2025, the board chose to renegotiate the SSA with vendors and did not seek shareholder approval at the Sept 18 extraordinary general meeting. The conditional period was later extended to Nov 28, before both parties decided to cancel the deal.
The group noted that RM2.63 million from its March 2025 special issue of new shares to Bumiputera investors, which was previously earmarked to partly fund the acquisition, will now be reallocated for future strategic acquisitions or collaborations.
Catcha Digital said the specific use of the funds will depend on the group’s funding needs and the status of negotiations on potential targets.
Catcha Digital has so far completed four out of eight deals this year including a 60% stake in One International for RM11.38 million in August, 60% of Drive 2 Digital for RM16.2 million in May, 70% of Tastefully Malaysia for RM7.6 million in June, and 51% of Nexible Solutions for RM11.3 million in January.
After cancelling the DS Services deal, only three acquisitions remain pending: 92.5% of Theta Service Partner, 60% of Framemotion Studio for RM37.32 million, and iMedia Asia’s Nov 6 proposal to buy Maxoom for RM6.125 million.
Shares of Catcha Digital closed down one sen or 3.51% at 27.5 sen on Monday. The group stands at a market value of RM123.9 million.