Digilife Technologies to acquire 71 percent of Stradbroke Investments

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Digilife Technologies has entered a deal to acquire 71 percent of Stradbroke Investments from TG Holdings HK for S$7.65 million in an all-share deal, according to a filing to SGX Wednesday.

The consideration will be paid via the issuance of 5.5 million new shares based on an issue price of S$1.39 each, which is the volume weighted average price (VWAP) for trades on 27 December, the filing said.

Stradbroke Investments is involved in multiple industries, including gold trading, fisheries, timer trading and property, and owns 51 percent of a digital application product company called HYLF, which develops digital applications, the filing said. The target company owns all of Stradbroke Ventures PNG, which trades timber, fisheries and raw gold in Papua New Guinea, the filing said.

In addition, Stradbroke Investments owns a five-storey building at 152 Ubi Avenue 4, the filing said.

“The proposed acquisition will give the company entry into the digital application space/innovative start-up space (via HYLF App), give ownership of a building/real estate of value and also access to other businesses in Papua New Guinea,” Digilife said in the filing.

“The board will decide post completion how these other business can be run and managed in the long run and if they are appropriately
aligned to the long term strategy of the company,” Digilife said.

HYLF is a startup developing a digital app-based service for providing private air charter services mainly to ultra-high net worth individuals and corporate executives of large multinational corporations, the filing said.

“HYLF has potential in the arena of digitizing private jet charter service and other related services to the UHNW segment, and will also assist in creating a network for the company for further business associations with key decision makers,” Digilife said.

The remaining 29 percent of Stradbroke Investments is held by Smart Co. Holding, which is wholly owned by Dr. Modi Bhupendra Kumar, who is Digilife’s chairman and non-independent non-executive director and controlling shareholder, the filing said. Modi owns 44 percent of HYLF, the filing said.

Modi holds 52.38 percent of Digilife currently, and would hold 37.2 percent of the enlarged share capital if the deal is completed, the filing said. TG Holdings HK will hold around 28.9 percent of Digilife if the deal is completed, the filing said.

An independent valuer has been commissioned to perform a valuation of Stradbroke Investments, Digilife said.

Digilife Technologies, formerly known as Sevak, operates in Indonesia’s telecom segment, mainly as an authorized distributor of prepaid mobile cards for major telcos as well as selling mobile devices via its retail shops. Digilife offers consultancy on maintenance and disaster recovery services as well as big data, networking and data hosting services. The company also manages a commercial electric-vehicle fleet in conjunction with ride-hailing service Grab, according to its website.

Correction: An earlier version of this article stated the wrong day Digilife Technologies made the announcement. The announcement was published to SGX early Wednesday.