Xamble Group Secures Full Control of Xamble Technologies
XAMBLE GROUP LIMITED (XGL) Share Update September 2024 Thursday 26th
Xamble Group Increases Stake in Xamble Technologies to 100%
Xamble Group Limited (ASX:XGL) has announced an agreement to increase its shareholding in Xamble Technologies Sdn. Bhd. from 85.71% to 100%, acquiring the remaining 14.29% stake from Naven Prasad A/L Rajasegaran.
Instant Summary:
- Xamble Group increases stake in Xamble Technologies from 85.71% to 100%.
- Acquisition cost is MYR100,000 (A$34k), split between cash and CHESS Depositary Interests.
- Full control will accelerate development of Xamble Creators platform and Xamble Social Wallet.
- Naven Prasad A/L Rajasegaran to remain as Technology Advisor and Director of XT.
- XT received a MYR3.59 million (A$1.24 million) Malaysian Digital Acceleration Grant.
Acquisition Details
Xamble Group Limited (ASX:XGL), a pioneering platform for influencer-centric digital marketing solutions, announced that it has entered into an agreement to acquire the remaining 14.29% stake in its majority-owned subsidiary, Xamble Technologies Sdn. Bhd. (XT). This acquisition will increase Xamble's ownership from 85.71% to 100%.
The acquisition cost totals MYR100,000 (A$34k), with MYR50,000 (A$17k) to be paid in cash upon completion. The remaining MYR50,000 (A$17k) will be issued as CHESS Depositary Interests (CDIs) in Xamble, contingent upon the successful completion of certain milestones related to the Malaysian Digital Acceleration Grant.
Strategic Implications
By securing full control of XT, Xamble aims to accelerate the development of its key projects, the Xamble Creators platform and the Xamble Social Wallet. These initiatives are expected to enhance the company's digital marketing capabilities and expand its influence in the South East Asian market.
Naven Prasad A/L Rajasegaran, who previously held the 14.29% stake, will continue to serve as Technology Advisor and Director of XT, ensuring continuity and expertise in the company's technological advancements.
Grant and Future Prospects
As previously announced on 6 May 2024, XT received a Malaysian Digital Acceleration Grant totaling MYR3.59 million (A$1.24 million). This grant will be disbursed over three years, subject to the achievement of specific project milestones. The funds are expected to significantly bolster XT's development projects and overall growth strategy.
The acquisition of the remaining stake in XT is a strategic move that positions Xamble Group for accelerated growth in the digital marketing sector. Full control over XT allows Xamble to streamline its operations and focus on key development projects. This could positively impact the company's stock as investors may view the move as a commitment to long-term growth and innovation.
Investor Reaction:
Analysts are likely to view this acquisition favorably, as it demonstrates Xamble's commitment to expanding its technological capabilities and market reach. The continued involvement of Naven Prasad A/L Rajasegaran as Technology Advisor and Director of XT is also a positive signal, ensuring that the company retains valuable expertise.
Conclusion:
Investors should keep an eye on Xamble Group's progress with the Xamble Creators platform and Xamble Social Wallet, as these projects are critical to the company's growth strategy. The successful completion of the Malaysian Digital Acceleration Grant milestones will also be an important indicator of future success.