Allied Technologies enters into MOU with Chinese payments company for US$10m

Allied Technologies said on Tuesday it has entered into a binding memorandum of understanding (MOU) with 8travelpay Intelligence & Technology (Shanghai) Co (8TPS) for a total consideration sum of US$10 million.

Incorporated in China, 8TPS is mainly in the business of providing payment and technology solutions to the corporate travel market.

In a filing to the Singapore Exchange, Allied Technologies said the MOU is to provide the company the platform to diversify its business operations and invest in the technology and services sectors, as well as to penetrate China's growing corporate travel market through a strategic partnership with 8TPS.

The proposed investment sum will consist of US$2.5 million for the subscription of shares in 8TPS, representing 10 per cent of the total enlarged share capital, and US$7.5 million for the subscription of loan notes, which will be convertible to shares in 8TPS representing 15 per cent of the total enlarged issued share capital.

The loan notes may be convertible to the conversion shares at the election of the company before the end of 24 months from completion of the proposed investment which, together with the subscription shares, will represent 25 per cent of the total enlarged issued share capital of 8TPS.