KUALA LUMPUR (Feb 13): Catcha Digital Bhd (KL:CATCHA) has terminated its proposed RM34.96 million cash acquisition of a 92.5% stake in financial service firm Theta Service Partner Sdn Bhd, citing unsatisfactory findings during its due diligence review.

In a bourse filing on Friday, Catcha Digital said its subsidiary, Catcha Theta Holdings Sdn Bhd, terminated the deal’s agreement on the expiry of the conditional period.

The completion of the deal had previously been extended in January by a month to allow more time to meet several conditions precedent. Key outstanding requirements then included formal board approval from Theta Service Partner for the share transfer, the execution of new employment agreements with key personnel — Hew How Fong, Choy Chong Hwai and Mark Leong Tse Ho — and the finalisation of the due diligence.

Theta Service Partner is currently owned by Leong (52.4%), Austria's Genesis Liegenschafts Verwaltung GmbH (33.6%), Hew (4%), Choy (3%) and two other minority shareholders.

Following the termination, Catcha Digital said it will reallocate RM5.73 million — part of the proceeds from a previous rights issue that were originally earmarked to fund this deal — towards future acquisitions or collaborations.

The rights issue, completed in November 2025, raised RM24.33 million in total to fund a slew of acquisitions.

The Theta Service Partner deal was one of eight acquisitions that Catcha Digital proposed over the last two years. Besides this Theta Service Partner acquisition, the other deal that was terminated was the purchase of a 51% stake in DS Services Sdn Bhd, an information technology and digital marketing firm 

The six remaining acquisitions were successfully completed in 2025. They were for: 51% of Nexible Solutions Sdn Bhd, a software and customer relationship management solutions company (RM11.3 million); 60% of Drive 2 Digital Sdn Bhd, an automotive media network company (RM16.2 million); 70% of Tastefully Malaysia Sdn Bhd, a food and beverage expo organiser (RM7.6 million); 60% stake in One International Exhibition Sdn Bhd, a specialist in trade exhibitions and event management (RM11.38 million); 60% of Framemotion Studio Sdn Bhd, which specialises in digital and augmented or visual reality installations (RM37.32 million); and the entire stake in Maxoom Sdn Bhd, which owns 
TechNave, a multilingual consumer tech news portal (RM6.13 million).

Shares in Catcha Digital ended half a sen or 1.79% lower at 28 sen, valuing the company at RM125.09 million.