Entomo, Raveenderen to buy EcoWorld unit’s shares in MySejahtera operator

• Entomo and Raveenderen are to complete the put option by purchasing the MYSJ shares for RM24 million plus a premium.
• The purchase of the shares is to be completed within three months from July 28.

KUALA LUMPUR (July 29): Entomo Malaysia Sdn Bhd and Raveenderen Ramamoothie are to purchase all Hasrat Budi Sdn Bhd’s shares in MYSJ Sdn Bhd — the operator of the MySejahtera application — for RM24 million plus a premium.

This follows a consent judgement recorded in the High Court on Thursday (July 28), said a bourse filing from Hasrat Budi’s parent company, Eco World Development Group Bhd (EcoWorld).

Hasrat Budi had sued Entomo and Raveenderen on April 29 for failure to buy all of its shares in MYSJ by April 28 following a put option exercised by the company.

The put option resulted in Hasrat Budi owning a 10% stake in MYSJ, according to an announcement by EcoWorld on April 5.

Under the consent judgement, Entomo and Raveenderen are to complete the put option by purchasing the MYSJ shares for RM24 million plus a premium at the rate of 10% per annum calculated from Aug 27, 2021, until the date of full payment.

The purchase of the shares is to be completed within three months from Thursday (July 28).

“This consent judgement will not affect the ongoing legal action filed by [Hasrat Budi] against Revolusi Asia Sdn Bhd, Entomo and Raveenderen for the breach of certain representations and warranties under the share sale agreement as announced on April 18,” EcoWorld added in its filing.

EcoWorld was referring to another claim filed by Hasrat Budi against Entomo, Raveenderen and Revolusi Asia for breach of certain representations and warranties to Hasrat Budi under a share sale agreement inked on Aug 27, 2021.

Entomo is the developer of the MySejahtera app, and is 100% owned by Singapore-based Entomo Pte Ltd. Raveenderen is the co-founder and chief executive officer of the company.

Raveenderen was also reported to be having a 76% stake in Revolusi Asia, which is the nominee of Entomo. The company, which reportedly entered into a deal with MYSJ to transfer MySejahtera's intellectual rights and software licence to Entomo in 2020 for RM338.6 million, was in turn reported to be holding an 81.43% stake in MYSJ.

Shares in EcoWorld finished half a sen or 0.82% higher at 61.5 sen on July 28, giving the group a market capitalisation of RM1.8 billion.