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EUROSPORTS Global Limited has entered into a non-binding memorandum of understanding (MOU) to acquire ordinary shares in the issued and paid-up share capital of SS Ventures Limited, a company incorporated in Hong Kong.
Owned by Siu Tat Man, SS Ventures is principally engaged in the development, improvement and maintenance of a comprehensive online solution for taxi hailing services.
The MOU is not intended to be legally binding between the parties. As such, the proposed acquisition remains subject to the entry into definitive agreements between EuroSports Global and Mr Siu and others as directed by him, including a conditional sale and purchase agreement, for the proposed acquisition.
Said EuroSports Global in an SGX filing: "The parties will use their respective best endeavours to negotiate in good faith and sign the definitive agreement within 30 days from the date of the MOU."
It said that the company intends to tap on the opportunities arising from the demand for mobile applications that provide seamless connection between passengers and transportation providers.
The company believes that the proposed acquisition represents a natural extension of their automotive and rental businesses, and could derive synergistic benefits from SS Ventures with the use of information technology in its existing business.
In its statement, the company aims to achieve business growth and profitability improvement in its luxury business segments through the potential creation of products and services that are driven by new technology and know-how.
The proposed acquisition will be carried out in four stages. In the first stage, within the first 30 days of signing the MOU, EuroSports Global will enter into the definitive agreement to purchase shares in SS Ventures representing 10 per cent of the issued and paid-up share capital at a purchase consideration of US$3 million. The first tranche purchaser shares represent 6.66 per cent of the existing issued and paid-up share capital of EuroSports Global.