Singapore-listed video solutions provider Artivision Technologies is set to acquire local fintech firm Mobile Credit Payment (MC Payment), which will eventually result in a reverse takeover deal, according to a company statement.
Artivision said, it has entered into a conditional sales purchase agreement with MC Payment for a consideration of up to S$125 million ($94 million) for 100 per cent stake.
In return, Artivision has also proposed to undertake a share consolidation to convert every 20 existing shares into one consolidated share.
The acquisition would be satisfied in full by the allotment and issuance of up to 446.4 million consideration shares at the post-share consolidation issue price of S$0.28 per consideration share.
The total consideration for the proposed acquisition include up to S$80 million ($60 million) for the purchase of sale shares held by the shareholders of MC Payment; an amount of up to S$20 million ($15 million), being the additional consideration; and up to S$25 million ($19 million) in respect of the acquisition of iFashion Group by MC Payment.
MC Payment was among the firms that had recently submitted proposals to the Singapore government after the latter had sought the industry’s suggestions to adopt cashless payment systems in the city-state.
If the deal is completed, it will result in MC Payment undertaking a reverse takeover of Artivision, making the fintech firm the first company in this space to the listed on the Singapore Exchange.
The announcement said that Ching Chiat Kwong, a controlling shareholder of Artivision, has agreed to acquire all of Artivision’s outstanding convertible bonds and options from their respective holders.
The company will in turn issue 100 million new consolidated or settlement shares at an issue price of S$0.10 per share (on a post-share consolidation basis), with an aggregate issue price amounting to S$10 million.
“The proposed reverse takeover remains a valuable growth opportunity which will give shareholders the optimism they have been looking for. As a major shareholder and a veteran in business development, I am enthusiastic on my role in providing strategic guidance to navigate the company towards its next level of development,” Ching said.
The payments market remains largely fragment and the trend to simplify and integrate payment solutions in industries with high transaction environments is growing stronger, according to Anthony Koh, founder and CEO of MC Payment.
“The proposed RTO is extremely meaningful in providing us greater access to the broader investor community, and in raising our profile and our propensity to achieve greater heights in our next phase of growth,” he added.
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