REVENUE GROUP BERHAD

PROPOSED DISPOSAL

We refer to the Company's announcement dated 4 November 2024, in respect of the aforesaid matter.

In this connection, kindly furnish Bursa Securities with the following additional information for public release:-

1) Section 2.1

a) To explain whether the Disposal Consideration and/or the Profit Guarantee will be revised subject to the outcome/ findings of the Due Diligence Exercise by Datasonic.

b) To also specify the expected date of completion of the Due Diligence Exercise.

2) Section 2.2

a) It is noted that discounted cashflow (“DCF”) valuation was not adopted as the valuation methodology in arriving at the disposal consideration. However, the DCF was adopted by Datasonic in arriving at the consideration via its announcement dated 4 November 2024. In this regard, to further justify why DCF methodology was not considered in the valuation.  

b) To explain the rationale for companies with net assets of up to RM40 million was chosen as comparable companies.

c) To also explain whether an illiquidity discount rate was applied as Innov8tif Holdings Group are private companies.

3) Section 2.5

To also show the expected gain/loss based on Minimum Disposal Consideration of RM34.50 million for comparison.

4) Section 3

a) To provide segmental revenue and PAT/(LAT) contribution from each business segments of REVENUE Group for the past 3 financial years together with the commentary.

b) To explain which entities within Innov8tif Holdings Group that contributes most to revenue and/or PAT/(LAT) of the Innov8tif Holdings Group.

c) With the disposal of Innov8tif Holdings, please explain whether REVENUE has in place, any alternative solutions to Innov8tif Holdings Group’s digital ID assurance and onboarding to complement REVENUE’s businesses.  If yes, please explain on these alternative solutions.  Otherwise, please explain the reason behind REVENUE’s decision not to continue with the digital ID assurance and onboarding solutions, given it was the purpose of REVENUE’s acquisition of Innov8tif Holdings which was completed only in June 2023.

5) Section 4

a) To provide the details of the professional body that granted the patents to Innov8tif Holdings Group and the significance of such patents to the Company.

b) To further state the effect of not being able to leverage on Innov8tif Holdings Group’s digital ID solutions and/or clientele base to REVENUE Group moving forward.

6) Section 2 of Appendix III

a) To show the summary of key financial information of each company within Innov8tif Holdings Group up until unaudited 8-month FPE 31 August 2024.

b) To explain reason for the significant increment in NA of Innov8tif Holdings Group in comparison to the NA as announced by Revenue on 12 May 2023.

c) To also provide details of receivables/ bad debts of Innov8tif Group and the reasons thereof (if any and where applicable).

d) To tabulate and provide details of the recent contracts won/ obtained by Innov8tif Holdings Group (if any).

7) Section 4 of Appendix III

To specify each of the shareholder(s) respective shareholdings in Innov8tif Consortium Sdn Bhd in percentage.

Please furnish Bursa Securities with your reply within one (1) market day from the date hereof.

Yours faithfully,

Listing

Regulation

Cc : Market Surveillance Dept., Securities Commission