The proposed acquisition is subject to approval by shareholders through an extraordinary general meeting (EGM) to be convened. Modi will abstain from voting for the transaction at the EGM.
Catalist-listed Digilife Technologies has entered into a share purchase agreement on Dec 28 to acquire a 71% stake in Stradbroke Investments for $7.65 million. The stake is being acquired from TG Holdings HK, with the purchase consideration to be paid through the issue of 5.5 million new shares in Digilife Tech at an issue price of $1.39 per share.
TG Holdings HK is a Hong Kong-based firm controlled by one Xiwen Zhao. The remaining 29% of Stradbroke Investments’ share capital is owned by Bhupendra Kumar Modi, who is Digilife Tech’s chairman and non-independent non-executive director.
