Artivision shares jump on potential entry into fintech through proposed RTO
Singapore
SHARES of Artivision Technologies Ltd surged on active trade on Wednesday after its trading halt was lifted on news of a proposed acquisition that may lead to a reverse takeover (RTO) and entry into the fast-growing fintech business.
The stock was the third most active counter on the Singapore bourse with 125.12 million shares changing hands, jumping by 23.53 per cent to close at 2.1 cents.
Catalist-listed Artivision said on Tuesday that it has signed a conditional and non-binding heads of agreement (HOA) to acquire Mobile Credit Payment (MC Payment) Pte Ltd.
The proposed acquisition comes on the back of Singapore's push towards cashless payments. Homegrown MC Payment, founded in 2005, is a pioneer of omni-channel and omni-payment solutions in the Asia-Pacific region, with a presence in Singapore, Malaysia, Hong Kong, Thailand, Indonesia, Australia and Cambodia.
It currently provides services to over 2,000 active merchants, and its proprietary product offerings also include e-wallet applications, B2B invoicing and payments processing, mobile point-of-sale systems, and non-cash payment products.
"The company's acquisition of one of Singapore's earliest fintech firms is timely as it allows its shareholders to participate in a business with a proven business model which has the potential for significant growth," Artivision said.
The group currently provides diverse computer-vision solutions and services for video security and online video monetisation.
It said on Tuesday that it will acquire MC Payment's entire issued and paid-up share capital and convertible bonds from its shareholders and bondholders for no less than S$80 million. The convertible bonds of MC Payment consist of Series B bonds and Series C bonds with an aggregate principal value of S$5.5 million with accrued and outstanding interest.
Besides the base consideration of S$80 million, Artivision will also offer an additional consideration equal to the amount raised by MC Payment under its own fundraising activities of at least S$64 million. Investors under these fundraising activities shall agree to sell their shares or convertible securities in MC Payment to Artivision.
The total consideration will be fully satisfied by Artivision via the issuance of new shares at an issue price of 1.4 cents on a pre-consolidation basis.
To reduce the outstanding debt and possible dilution to MC Payment's shareholders and bondholders, Artivision's controlling shareholder Ching Chiat Kwong has agreed to acquire all of Artivision's outstanding bonds and options from their respective holders, and to enter into an agreement with the group to redeem all of these bonds and cancel these options.
Mr Ching, who is executive chairman and CEO of property developer Oxley Holdings, will have a 25.18 per cent stake once the proposed RTO goes through. He will continue to remain a key shareholder of Artivision, of which he currently holds a 21.98 per cent stake, and provide consultancy services for the future growth of the company.
