SINGAPORE - Mainboard-listed Singapura Finance will pay US$5 million (S$6.9 million) for a 1.6 per cent stake in the enlarged share capital of homegrown digital payments firm MatchMove Pay.
The finance company's agreement to subscribe for 587,035 Series Bc preference shares in MatchMove, or about US$8.52 per share, will be funded by internal resources and paid for in cash.
MatchMove's issued and paid-up share capital as at Oct 16 is split into about $221,000 and US$2.7 million worth of ordinary shares, and $11.5 million and US$44.6 million of preference shares.
The subscription price was based on a US$295 million pre-money valuation of MatchMove and represents an opportunity to acquire a stake in a business that has possible long-term growth potential, Singapura Finance said. Pre-money valuation refers to MatchMove's valuation prior to more investment or financing.
Completion of the deal, expected on Oct 31, is subject to fulfilment of certain conditions such as regulatory approval.
MatchMove reported a net loss of about $20.4 million for the year to end-December 2017, based on the latest available audited financial statements.
The company develops end-to-end banking-as-a-service wallet solutions with a full suite of application programming interfaces, allowing enterprises to offer a secure mobile solution and virtual/physical cards to customers globally.
Its current shareholders include two of its five directors, Naik Shaileshkumar Sumantrai and Leow Hsueh Huah.
Other investors include V V Pentafond Pte Ltd, Rudi S Komajaya, Vickers Venture Fund III LP, Vickers Venture Fund IV LP, Credit Saison Co, Ltd, Iconic World Limited, Crystal Loft Group Limited, ZTC Private Markets Gmbh and NTT Investment Partners Fund III LP.
Singapura Finance shares were unchanged at $0.87 as at 9.07am.