Digilife Technologies is poised for a remake of its business activities again.
On April 4, the company secured shareholders’ approval at an EGM to bring in a new controlling shareholder and to diversify into new areas ranging from property investment, app development, as well as to hold interests in timber, gold and fisheries in Papua New Guinea.
In its previous reiterations as a listed company, Digilife (and its predecessors under different names ranging from Mediaring, Si2i, Sevak) had dabbled in internet telephony, distributing pre-paid mobile cards; electric vehicles, among others.
Under terms of the deal, Digilife is acquiring 71% of an entity called Stradbroke Investments from the vendor TG Holdings HK, owned by one Zhao Xiwen, for $7.65 million. The acquisition is to be paid by issuing 5.5 million shares at $1.39 each.
Upon completion of the acquisition, the vendor, Zhao, will hold 28.92% of the enlarged share capital of Digilife. Existing controlling shareholder cum chairman Bhupendra Kumar Modi (picture) will see his stake trimmed from 52.38% to 37.24%.
“We shall both be working very closely on a strategic review of the group’s new businesses and growth plans so as take positive steps towards enhancing overall shareholder value,” says Modi.
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Stradbroke, a Singapore incorporated company, has three subsidiaries. The first, Smart Innovation Global, owns a building at 152, Ubi Ave 4 valued at $38 million. In contrast, based on Digilife’s last traded price, its market cap was $26.7 million.
The second subsidiary, Stradbroke Venture is incorporated in Papua New Guinea and is in timber trading, gold trading and fisheries.
HYLF, meanwhile, is a start-up digital application product company focused on the development of digital applications.
As described by Digilfe, Zhao, the new shareholder, is a 2010 graduate of Maoming Radio and Television University (Guangdong Radio and TV University). He was involved in the management of a Shenzhen-based construction engineering firm with numerous operations in Southeast Asia.
Zhao and some unnamed partners operate CapaJet, a firm specialising in private jet business operating out of Hong Kong, says Digilfe.
“While the company is committed to manage its current core business and keep its cost optimised, it is simultaneously exploring new areas of opportunities and alternate businesses under the new business to increase the revenue streams of the group.
“The group may explore new areas of opportunities, including joint ventures, partnerships and/or strategic alliances to carry out its new business, and expand into overseas markets should appropriate opportunities arise in future,” adds the company.
Digilife last traded at $2.05.
