DigimaticGroup Ltd Acquires 8VIC Global, a Subsidiary of 8i Limited

KEY TAKEAWAYS:

• 8I Holdings Limited signed an option agreement with Digimatic Group Limited for the sale of 8VIC Global Pte. Limited, a 95%-owned subsidiary of 8I Holdings Limited.
• The deal gives 8VIC Global the right to dispose of all its shares in 8VIC Global Pte. Limited.
• The Proposed Transaction is subject to the approval not only of regulatory agencies but also of the shareholders of DMC and 8I Holdings Limited.

8I Holdings Limited has entered into an agreement with Digimatic Group Limited (DMC) for the sale of 8VIC Global Pte. Limited, a 95%-owned subsidiary of 8I Holdings Limited. Under the option agreement, 8VIC Global will have the right to dispose of all its shares in 8VIC Global Pte. Limited.

A successful completion of the Proposed Transaction would mean 8VIC Global’s disposal at an issue price of A$0.042 per share in consideration of DMC’s share of 1,448,955,200. This represents 66.5% of DMC’s post issuance enlarged share capital and the existing interest of 8i Holdings Limited in the company.

After the transaction, 8I Holdings Limited will approximately have 69.7% share of DMC. The minority holder of 8VIC Global (5%) will receive 76,260,800 with the completion of the Proposed Transaction since it is also a party to the Term Sheet. The Proposed Transaction is, however, subject to DMC’s due diligence and the approval of the regulatory agencies and shareholders of both companies involved.

DMC, which was incorporated in Singapore, provides a variety of services including e-commerce, digital marketing, seminars, conferences and events management. It is one of the region’s leading Digital Performance Marketers.

DMC’s revenues have been on the rise from S$5.9 million as of March 2015, S$9.1 million as of March 2016 and $15.2 million as of March 2017. Its net profits likewise increased at approximately S$0.7 million, S$0.9 million and S$1.1 million, during the respective periods. The company has a total of S$10.9 million cash at bank as of September 30, 2017.

8VIC Global, on the other hand, provides financial training and education in Singapore and Malaysia. Among its key programs are the Value Investing Bootcamp, Option Master Program, Millionaire Investor Program, Real estate Investment Trusts Program and Value Investing Summit.

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