Digilife Tech’s Stradbroke purchase is off

CATALIST-LISTED Digilife Technologies : BAI 0%’ 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’s previous announcement showed that the transaction depended on “prior written consents and approvals, if required” 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 — another condition that had not been met at the time of the termination.

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Shares in Digilife, which offers technology services and used to be known as Sevak, last traded at S$1.95, up by S$0.09 or 4.8 per cent, before the news.