Axington proposes acquisition of Web technology firm that is expected to lead to reverse takeover

AXINGTON has inked a non-binding memorandum of understanding to acquire a 60-per-cent stake in a Hong Kong Web technology company that is expected to result in a reverse takeover of the Catalist-listed cash company.

In its regulatory statement to the Singapore Exchange on Thursday night, Axington announced that the understanding inked on July 8 would form the broad basis of the definitive agreements to be entered into within a month with Delta Investment Holding Group for the proposed acquisition of the stake in Veivo Web Technology for S$405 million.

Under the acquisition, the Catalist-listed firm is to pay at least S$30 million in cash, as well as issue and allot new shares at no less than S$0.19 per share to the vendor.