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Digilife Tech acquires 51% stake in sustainable building materials manufacturer for $4.9 mil
Catalist-listed Digilife Technologies has acquired a majority stake in Brimax AAC Products LLP, a manufacturer of sustainable building materials, for INR336.6 million or $4.9 million.
The company, on Sept 30, entered into a sale and purchase agreement (SPA) with Brimax AAC&rsquo s shareholders, Dineshbhai Devasi, Badrilal Vanghabhai Devasi, Prabhulal Murji Dholu, Bhavesh Prabhulal Dholu and Nikul Prabhulal Dholu, to acquire 51% of the partnership interest in Brimax AAC. Dineshbhai and Badrilal own 25% each in Brimax AAC, while Prabhulal, Bhavesh and NIkul own 16.68%, 16.66% and 16.66% of the company&rsquo s shares respectively.
The proposed acquisition is considered to be a &ldquo major transaction&rdquo under Catalist rules and will be subject to an approval from Digilife Tech&rsquo s shareholders at an extraordinary general meeting (EGM).
The proposed transaction will result in the diversification of Digilife Tech&rsquo s core businesses it is primarily in the distribution of operator products and services, information communications and technology distribution and managed services (IT business) and mobile devices retail services (telecom business).
Digilife Tech is also involved in the management of various types of properties including residential, hospitality, retail and office, industrial (property related assets). The company also has holding investments in properties for rent and capital growth potential.
As at Digilife Tech&rsquo s Oct 1 announcement, the company has exited from the telecom business and is in the process of exiting from its IT business, which is deemed to be a &ldquo non-strategic and a sunset business&rdquo .
&ldquo Following the completion of the disposal of such businesses, it is envisaged that the company may not have any operating businesses. Accordingly, the company has been actively seeking various opportunities which include business relating to the property related assets business which it had obtained shareholders&rsquo approval to diversify into in April 2022.&rdquo
Should the acquisition be approved by shareholders, Digilife Tech intends to diversify its business to include the manufacturing, processing, and distribution of a wide range of construction and building materials.
These materials include autoclaved aerated concrete (AAC) blocks and panels, reinforcement panels, fly ash bricks, lightweight blocks, ready-mix concrete, precast products, paving blocks, wall and floor tiles, vitrified tiles, structural lintels, claddings, adhesives, dry mix products, epoxy grout, glass mosaic tiles, sanitaryware, pipes and fittings, plywood, laminates, steel products, roofing sheets and architectural glass solutions.
See also: Tai Sin Electric proposes acquisition of two companies for total of US$12.3 mil
Digilife Tech foresees the acquisition to allow it to benefit from the growing Indian construction sector, which is poised to be the third largest globally in 2025 with urbanisation and population growth driving demand for housing and commercial spaces.
As at Oct 1, the entire partnership interest in Brimax AAC comprises the fixed capital contribution of INR100,000 and the floating capital contribution of approximately INR412.6 million. The floating capital contribution will be converted into fixed capital prior to completion of the proposed acquisition and will be subject to adjustments per the SPA.
Brimax AAC owns a plot of land in Vadodara, India of approximately 23,515 sqm and is operating a AAC production plant which can produce up to approximately 600 cubic meters per day of AAC block.
The plant has commenced operations since the beginning of 2025 and has generated revenue of approximately INR52.9 million or $0.8 million from Jan 1 to June 30.
As at March 31, Brimax AAC&rsquo s book value and net tangible asset is around INR260 million. Its net loss after tax was around INR80.7 million as at the same period.
The proposed acquisition is subject to Brimax AAC&rsquo s shareholders obtaining a no-objection certificate from the Housing Development Finance Corporation Bank (HDFC Bank) and Digilife Tech getting the relevant regulatory consent or approvals.
The transaction, which will be funded by internal resources, is expected to be completed on or around Nov 15.
SGX RegCo issues &lsquo trade with caution&rsquo alert on Digilife Technologies
SINGAPORE Exchange Regulation (SGX RegCo) on Wednesday (Apr 12) issued a &ldquo trade with caution&rdquo alert on Digilife Technologies : BAI -0.69%, after its share price rose by 157 per cent or S$1.76, from S$1.12 on Jan 6 to S$2.88 on Apr 11.
The bourse regulator noted that in the same period, the Straits Times Index climbed 21.11 points or 0.6 per cent.
It said that between Mar 1 and Apr 11, Digilife Tech&rsquo s share buybacks contributed to about 70.6 per cent of the stock&rsquo s buy volume. In that period, the stock&rsquo s share price rose S$1.08 or 60 per cent, from S$1.80 to S$2.88.
This resulted in its market capitalisation surging to S$38.6 million on Apr 11, up by about S$14.3 million, and above its most recently announced net asset value of S$30 million as at Dec 31, 2022.
SGX RegCo also highlighted that Sevak Limited, which the company was known as before a 2021 name change, was also issued with a &ldquo trade with caution&rdquo alert in January 2019, in relation to trading activities from its share buyback account.
It added that it is continuing to review and monitor trades in Digilife Tech&rsquo s shares and will take all necessary actions, including referring the case to statutory authorities where warranted.
The counter closed at S$2.86 on Wednesday, down S$0.02 or 0.7 per cent, before the alert was issued.
What is wrong with a company with a lot of net cash spending a little cash daily for share buybacks?
SGX Regco mentioning the NAV seems to hint that when share buybacks are done above NAV, investors need to be cautious?!?!?!
The fact that the share buyback has to be done at higher prices over the period of time is due to a lack of sellers at lower prices so how can that be the fault of the share buyback?
SGX urges investors to trade with caution in Digilife Technologies
Samantha ChiewWed, Apr 12, 2023 &bull 05:40 PM GMT+08 &bull 52 minutes ago &bull 1 min readSingapore Exchange (SGX) is urging investors and potential investors to exercise caution when dealing in shares of Digilife Technologies BAI -0.69% .
The technology service and solution provider saw its shares climb steadily from $1.12 on Jan 6 to $2.88 on Apr 11, representing an increase of $1.76 or 157%. The Straits Times Index (STI) rose by 21.11 points to 0.64% during the same period.
In particular, SGX highlighted that shares in Digilife rose $1.08 or 60% to $2.88 from $1.80 between Mar 1 and Apr 11, with Digilife&rsquo s share buyback account contributing about 70.6% of the buy volume for the stock.
As a results of this, its market capitalisation rose by about $14.3 million to reach $38.6 million on Apr 11, above its latest announced net asset value of $30 million as at dec 31.
SGX RegCo has noted that Digilife underwent a name change with effect from May 6. It was previously known as Sevak Limited, which was the subject of a Trade with Caution alert issued on Jan 31, 2019 in relation to trading activities by its share buyback account.
SGX RegCo is reviewing and monitoring trades in Digilife shares and will take all necessary actions including referring the case to statutory authorities where warranted.
Digilife Technologies
On Jan 3, Digilife Technologies : BAI -5.08% executive chairman and group chief executive officer (CEO) Bhupendra Kumar Modi increased his total interest from 54.14 per cent to 56.62 per cent. This was on the back of a share purchase agreement between Blue Ocean Capital Partners and Spice Bulls for 335,400 shares with an aggregate consideration of S$751,296 at S$2.24 per share.
Spice Bulls is 100 per cent held by Smart Co Holding, which in turn is 100 per cent held by Dr Modi.
With nearly four decades of business experience, Dr Modi is known for bringing the latest technologies into India in partnerships with industry leaders like Xerox, Alcatel, Telstra, Olivetti, Axiata, Singapore Technologies Telemedia and Fountain Life, among others.
He is also the group chairman of Singapore-headquartered Modi Holding, a diversified business conglomerate with business interests in mobility, finance, healthcare, education, entertainment, clean energy, and life sciences.
The business operations of Digilife Technologies, formerly known as Sevak, are broadly classified into two operating segments. This first segment is telecom, which includes the distribution of telecom operator products in Indonesia, mainly mobile prepaid cards as authorised distributors of the well-established telecom operators.
The second is technology, which includes the information communications and technology distribution and managed services business in India.
On Dec 20, Digilife Technologies received shareholder approval to conduct buybacks limited to no more than 10 per cent of the total number of issued ordinary shares in the capital of the Catalist-listed company.
Digilife Technologies observed that the share price of the stock had been trading at below the net assets per share and that the share buyback exercise may provide confidence to the shareholders that the company was undervalued at the market price.
Digilife Technologies has also changed its financial year end from Mar 31 to Dec 31, which means the next set of audited financial statements for the financial period ending Dec 31, 2022, will cover a period of nine months from Apr 1, 2022, to Dec 31, 2022.
In addition, Anitha Reddy Chada has been re-designated from non-independent non-executive director to executive director.
Digilife Tech&rsquo s Stradbroke purchase is off
CATALIST-LISTED Digilife Technologies : BAI +4.84%&rsquo investment in Stradbroke Investments is a no-go, the board announced last Friday (May 13), citing unmet conditions precedent.
Digilife Tech and seller TG Holdings HK mutually agreed to terminate the sale and purchase agreement without liability to either party. The termination is not expected to materially affect the consolidated earnings and net tangible assets per share for the year to Mar 31, 2023, it said.
Under the original agreement, Digilife Tech had planned to take a 71 per cent stake in Stradbroke for S$7.6 million by issuing 5.5 million shares to TG Holdings HK at S$1.39 apiece.
But Digilife has now said that TG Holdings HK had not provided the company with certain third-party approvals that were conditions precedent for the completion of the agreement.
The company&rsquo s previous announcement showed that the transaction depended on &ldquo prior written consents and approvals, if required&rdquo from government landlord JTC Corp and lender DBS Bank.
The deal also required the full satisfaction and discharge of all outstanding loans owed to the company &mdash another condition that had not been met at the time of the termination.
COMPLETION OF THE PROPOSED DISPOSAL BY THE COMPANY OF ITS ENTIRE
SHAREHOLDING INTERESTS IN DELTEQ PTE. LTD.
The Board wishes to announce that the Delteq Disposal has been completed on 3 January 2022.
Following the completion of the Delteq Disposal, Delteq Pte. Ltd., together with its subsidiaries have
ceased to be subsidiaries of the Company.
SHAREHOLDING INTERESTS IN DELTEQ PTE. LTD.
The Board wishes to announce that the Delteq Disposal has been completed on 3 January 2022.
Following the completion of the Delteq Disposal, Delteq Pte. Ltd., together with its subsidiaries have
ceased to be subsidiaries of the Company.
Digilife Tech to sell 90% stake in loss-making EV firm for S$2.5m
DIGILIFE Technologies has proposed to divest its 90 per cent stake in loss-making Singapore Electric Vehicles, amid adverse business conditions caused by the ongoing travel restrictions.
The sale shares will be sold for around S$2.5 million to SEV Holding, which is in the business of retail sale of motor vehicles and renting and leasing of private cars.
In a bourse filing on Friday (Dec 3), Digilife said the proposed divestment will enable the group to " re-strategise" its financial and capital resources.
As it is, the electric vehicle (EV) fleet business was adversely affected in 2020 due to the travel restrictions. Despite the limited opening of activities and transport in Singapore, the group said it experienced a fluctuating revenue pattern from FY2020 to 2021.
Business has yet to fully return to pre-Covid levels, as seen from the rising number of Covid-19 cases in Singapore, it noted.
As at end-June this year, Singapore Electric Vehicles had run up a net loss of S$324,595. Its annual revenue for FY2020 came in at S$880,000, accounting for just 0.33 per cent of Digilife' s total revenue.
On a pro forma basis as at end-September 2021, the proposed divestment would result in a larger loss per share of 0.43 Singapore cents for Digilife, compared to 0.3 cent before.
The group said the deal prevents cash depletion and will positively impact its overall results in future.
It is also an opportunity to monetise underperforming assets, which will enable the group to streamline its existing businesses and to focus more on core operations.
Digilife intends to utilise the net proceeds from the divestment for general working capital purposes, repayment of borrowings and working capital loans, and to fund future business expansions, investments and acquisitions when suitable opportunities arise.
Get rid all @4 definitely is a good deal. But u can' t, u can only clear abt 40%
Anyone accepted the offer of $4.00?
If people are concerned over suspicious activities on this counter, how about Hi-P share price? It has sky-rocketed within a few weeks. Why is this so? Due to speculation about privatisation?
Almost all offer deals are like rigged by the insiders if you study all those deals in the past.
It seems that insiders or related parties have certain information on hand long time ago.
Having said that, is $4 a good offer price?
It seems that insiders or related parties have certain information on hand long time ago.
Having said that, is $4 a good offer price?
lolx... these interested party bought up before the company announced of partial acquisition... hmmm.. seems that its a gd way to make money.. Our dear sgx cannot do anything even though it blowed the whistle
.
Starship ( Date: 02-Feb-2019 11:32) Posted:
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Very suspicious indeed.............................
Sevak' s controlling shareholder intends to make partial offer for shares of the firm
FRI, FEB 01, 2019 - 10:36 PM
SEVAK Limited' s controlling shareholder Smart Co Holding said on Friday it intends to make a partial offer for the shares of the company directly or through its concert parties, which will result in Smart Co Holding and its concert parties holding about 51 per cent of the shares of Sevak.
Sevak said in a Singapore Exchange (SGX) filing that it was notified by Smart Co Holding of its intention on Friday after the close of trading.
It added that Smart Co Holding emphasised there is no assurance any transaction will eventually materialise, and no definitive or binding agreements have been reached in relation to the possible transaction.
The announcement came a day after the Singapore Exchange Regulation (SGX RegCo) urged investors and potential investors to exercise caution when trading in the shares of the company.
It noted that despite a general decline in the broader market, Sevak' s share price had climbed steadily from S$2.51 on Sept 17, 2018 to S$4.05 on Oct 19, 2018, representing a meteoric rise of S$1.54 or 61 per cent.
Of particular suspicion is that between Oct 4, 2018 and Oct 16, 2018, despite the Straits Times Index falling by 233.09 points or 7.13 per cent, Sevak' s share price rose from S$3.30 to S$3.80, an increase of S$0.50 or 15 per cent.
Since Sept 17, 2018, Sevak' s market capitalisation has increased by about S$14.8 million to reach S$44.4 million on Jan 25. On Jan 24, Sevak said that it had submitted an application to exit the watch-list.
SGX RegCo said that it is reviewing the trades in Sevak shares and will " take the necessary actions" .
Sevak' s counter shed 28 Singapore cents or 7.43 per cent to close at S$3.49 on Friday.
https://www.businesstimes.com.sg/companies-markets/sevaks-controlling-shareholder-intends-to-make-partial-offer-for-shares-of-the
Another Clown Stock flagged by SGX Circus....................
SGX RegCo urges caution when dealing in Sevak shares, citing unusual price movements
THU, JAN 31, 2019 - 7:45 PM
SINGAPORE Exchange Regulation (SGX RegCo) on Thursday urged investors and potential investors to exercise caution when trading shares of IT solutions company Sevak Limited.
In an announcement, it noted that the share price of Sevak had climbed steadily from S$2.51 on Sept 17, 2018 to S$4.05 on Oct 19, 2018, a meteoric rise of S$1.54 or 61 per cent, despite a general decline in the broad market.
Since Sept 17, 2018, Sevak' s market capitalisation has increased by about S$14.8 million to reach S$44.4 million on Jan 25, 2019. On Jan 24, 2019, Sevak announced that it had submitted an application to SGX-ST to exit the watch-list. SGX RegCo said that it is reviewing the trades in Sevak shares and will " take the necessary actions" .
Of particular suspicion is that between Oct 4, 2018 and Oct 16, 2018 despite the fall of the Straits Times Index (STI) by 233.09 points or 7.13 per cent, Sevak' s share price rose from S$3.30 to S$3.80, an increase of S$0.50 or 15 per cent.
On Oct 11, 2018, SGX RegCo issued a trading query to Sevak on unusual price movements in its shares that day. SGX RegCo observed that despite the STI falling as much as 96.28 points or 3.07 per cent, Sevak' s share price had risen by S$0.08 or 2.24 per cent.
Sevak responded that apart from its previous announcements regarding its share buy-backs from the market, it was not aware of any reasons that could explain the unusual price movements.
SGX RegCo had noted that during the 61 per cent price rise between Sept 17 and Oct 19, 2018, Sevak' s share buy-back account had contributed more than 70 per cent of the market traded volume for the stock.
From Oct 22, 2018 to Jan 25, 2019, after Sevak ceased its share buy-back activities, a group of clients was observed to account for more than 70 per cent of the buy volume of Sevak shares.
" These clients appear to be connected to one another. In particular, between Dec 14, 2018 and Jan 25, 2019, the closing price of Sevak shares remained steady around S$3.80 when the general market experienced volatility," SGX Regco said.
Shares of Sevak continued their upclimb on Thursday, adding seven Singapore cents or 1.9 per cent to finish at S$3.77.
https://www.businesstimes.com.sg/companies-markets/sgx-regco-urges-caution-when-dealing-in-sevak-shares-citing-unusual-price
Since when this one shoot up to $3?
Hahaha ...
Shocked. $3.
Never follow this one ... Sorrie sorrie.
Hahaha ...
Shocked. $3.
Never follow this one ... Sorrie sorrie.
Most of SGX listed companies are CON companies.
Cant believe MAS or Singapore authorities dont do anything.. suspicious. Dont invest in SGX listings.
Cant believe MAS or Singapore authorities dont do anything.. suspicious. Dont invest in SGX listings.
jm2212 ( Date: 12-Sep-2017 18:00) Posted:
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Bloody dirty company rights issued at 0.11 and then 0.05, i owned like 4mil shares before consolidation....loss so much. They have daily buy back activitiy but no faith in them any more
bernardc ( Date: 12-Sep-2017 15:54) Posted:
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mama shop..coy buys back at high price..
just ask whose shares it bought from??
no way price is trading above $3...
if u think is good..the track records stink sky high..
2 rights issues within 6 months..
n share cosolidation 400 becomes 1...wipe out most share holders..worse than chapter 11..
just ask whose shares it bought from??
no way price is trading above $3...
if u think is good..the track records stink sky high..
2 rights issues within 6 months..
n share cosolidation 400 becomes 1...wipe out most share holders..worse than chapter 11..
pnuklis ( Date: 12-Sep-2017 14:37) Posted:
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why got hammered today??????????????????????????