1.         INTRODUCTION

The Board of Directors of DGB Asia Berhad (“Board”) wishes to announce that the Company had on 5 January 2021 executed a Letter of Intent (“LOI”) with Pei Lai Choon (“Vendor”) for the proposed acquisition of 150,000 ordinary shares in Infostrike Sdn. Bhd. (Registration No. 201001040805 (924730-P)) (“Infostrike”), representing 30% of the issued and paid-up share capital of Infostrike, for a consideration of up to RM30.0 million, subject to the due diligence exercise to be undertaken by the Company (“Proposed Acquisition”).

2.         DETAILS OF THE LOI

The Company shall proceed to further negotiate with the Vendor and/or Infostrike on the salient terms of the Proposed Acquisition and subsequently enter into a definitive share subscription agreement upon satisfied with the required due diligence result on Inforstrike.

3.         INFORMATION ON INFOSTRIKE

Infostrike was incorporated in Malaysia as a private limited company, a leading mobile technology solution provider, pioneering mobile gaming platform and Enterprise Digitalization Solutions. Infostrike’s capabilities ranging from proprietary technology platforms and ready infrastructure such as Digital Asset Management System (DAMS), Infostrike Asset Management System (IAMS) and Infostrike Game Publishing Platform (IGPP) provide businesses with scalable, secure and highly adaptable mobile solutions to their clients’ needs.

4.         RATIONALE

The Proposed Acquisition is in line with DGB’s business objective in focusing into business digitisation and transformation field. The acceleration of business digitisation and transformation can be witnessed globally with the technological advancement from 5G wireless technology, Internet of Things enabled mobile apps, artificial intelligence (AI) and Machine Learning, Augmented Reality, and M-commerce continues to reshape the spending behaviour. As the Country marches forward with various initiatives in promoting digitisation amongst businesses of all level and DGB intends to enter into digitisation foray as demand for digitisation transformation is estimated on an upward trend.

5.         RISK FACTORS

The Proposed Acquisition is not expected to pose any additional risks to the DGB Group other than operational risks associated to the business of Infostrike.

6.         FINANCIAL EFFECTS

The Proposed Acquisition will not have any effects on the share capital and shareholding structure of the Company and is not expected to have any material immediate effect on the earnings per share, net assets per share and gearing of DGB for the financial year ending 31 December 2021.

7.         DIRECTORS’ AND SUBSTANTIAL SHAREHOLDERS’ INTEREST

None of the Directors and/or other major shareholders of the Company and/or any persons connected to them have any interest, direct or indirect, in relation to the LOI.

8.         DIRECTORS’ STATEMENT

The Board, after due consideration, is of the opinion that the LOI is in the best interest of the Group.

Further announcement will be made to Bursa Malaysia Securities Berhad if there is any significant development on the Proposed Acquisition.

We are pleased to attached herewith a press release dated 5 January 2021 entitled “DGB Asia Berhad to acquire a proprietary software solution advisory and development company to offer business digitisation and transformation solutions”.

This announcement is dated 5 January 2021.