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Allied Tech takes 51% stake in e-commerce ticketing platform Asia Box Office worth S$30m
CATALIST-LISTED Allied Technologies will acquire 51 per cent in e-commerce ticketing solution platform Asia Box Office for S$30 million in cash, it announced on Tuesday night after the market had closed.
The acquisition will be funded through proceeds gained from the issue and allotment of some 675.16 million placement shares on Oct 31 last year, Allied Tech said, which thereafter will see Asia Box Office become a subsidiary of Allied Tech.
Asia Box Office's ticketing platform focuses on sports, entertainment and lifestyle events in South-east Asia and Greater China.
Earlier this year on Jan 24, it signed a binding memorandum of understanding on the undertaking with vendor Platform Internet Capital.
The consideration values Asia Box Office at around S$59 million in total, Allied Tech said.
It took into consideration a valuation report by independent valuer Alternative Advisors, which pegged 100 per cent of Asia Box Office's value to between S$57 million and S$62 million.
Allied Tech, a manufacturer of precision stamped metal parts, said that on Mar 26, 2018, it received approval from shareholders to diversify into new businesses, e.g. e-commerce platforms for event ticketing, operating front-end technology and digital payment applications, and to identify and invest in or build proven business models related to e-commerce, with the extended goal of scaling them into "market-leading online companies".
The acquisition of Asia Box Office will provide shareholders with "diversified returns, offer new business opportunities and provide the group with additional revenue streams and improve its prospects" to enhance shareholder value, Allied Tech added.
On Tuesday, its counter closed 3.5 per cent down to 5.5 Singapore cents apiece.