MOG Digitech revises disposal deal, lowers consideration to RM12 million

MOG Digitech Holdings Limited announced a supplemental agreement to its August 25, 2025 disposal plan, revising the total consideration for the sale shares from RM22,000,000 to RM12,095,000. This revision also reduces the number of target companies involved in the transaction from 24 to 13. The adjusted consideration was determined through arm's length negotiations and a valuation by an independent valuer, estimating the aggregate fair value of the equity interest in the revised target companies at RM12,096,980 as of June 30, 2025.

The valuation utilized both market and cost approaches, with the market approach relying on a price-to-earnings (P/E) multiple and the cost approach using the adjusted net asset value method. The company anticipates recording a gain of approximately RM4,064,000 from the disposal.

The proceeds from the disposal are intended to boost MOG Digitech's optical-related business, focusing on enhancing sales and marketing initiatives for the "MOG" brand in Malaysia, including targeted advertising, strategic promotions, and comprehensive brand development. The company also plans to allocate funds for industry exhibitions, product launch events, and a customer loyalty program. This strategic shift aims for an asset-light, service-oriented business model.