CFA Society Singapore
SINGAPORE (Oct 31): Artivision Technologies is transforming itself into an electronic payment solutions provider.
The company has signed a conditional and non-binding Heads of Agreement (HOA) to acquire 100% stake in Mobile Credit Payment or MC Payment for a total consideration of not less than $80 million.
If completed, the proposed acquisition will result in a Reverse Takeover (RTO) of Artivision.
Established in 2005, homegrown MC Payment is a pioneer of omni-channel and omni-payment solutions in the Asia Pacific region, with presence in these markets, namely Singapore, Malaysia, Hong Kong, Thailand, Indonesia, Australia and Cambodia.
The total consideration consists of a base consideration of $80 million and and an additional consideration equivalent to cash raised by MC Payment from the date of the HOA until completion following the latter’s fund-raising activities.
The total consideration will be fully satisfied with the allotment and issuance to the MC Payment’s shareholders and bondholders of new shares in Artivision at a pre-consolidation issue price of 1.4 cents each.
As at 12.20pm, shares in Artivision are up 11.8% or 0.2 cent at 1.9 cents
Upon completion of the proposed acquisition and settlement of the bonds, the number of consideration shares issued with respect to the base consideration will represent at least 60.07% of the enlarged share capital of the company.
To reduce the outstanding debt of Artivision and possible dilution to the vendors following the acquisition, Ching Chiat Kwong, chairman and CEO of Oxley Holdings and a controlling shareholder of Artivision, has agreed to acquire all of the company’s outstanding bonds and options from their respective holders, for 2 billion new Artivision shares, at 1.4 cents each.
Immediately upon completion of the acquisition, Ching will hold a 25.18% in the enlarged stake of Artivision. Chng will also undertake to provide consultancy services for the future growth and development of the company.
Artivision says its proposed deal comes on the back of Singapore’s push towards cashless payments. MC Payment will also be one the first fintech companies to be listed on the Singapore Exchange.