Video solutions provider Artivision Technologies is entering into a reverse takeover deal, it said yesterday. It involves giving up a 70 per cent share of the company in exchange for e-payment and online retail business Mobile Credit Payment (MC Payment).
The total consideration includes a base of up to $80 million for shares held by MC Payment investors, an additional payment of up to $20 million and up to $25 million in respect of the acquisition of iFashion Group - an online platform that MC Payment is taking over.
Artivision has also proposed converting every 20 existing shares into one share.
The deal will be funded via allotting up to 446.4 million new consolidated shares at 28 cents apiece (or 1.4 cents each on a pre-share consolidation basis).
Separately, Artivision's controlling shareholder, Mr Ching Chiat Kwong, will acquire the firm's outstanding convertible bonds and options. Artivision will, in turn, issue 100 million new consolidated shares at 10 cents apiece to raise $10 million.
Mr Ching holds 22 per cent of Artivision. He will own 18.7 per cent of the firm's enlarged share capital upon completion of the proposed acquisition.
Artivision's board said MC Payment is "well positioned to capitalise on Singapore's push towards cashless payments".
The deal is subject to shareholder approval and an independent valuation of MC Payment.
Artivision shares closed unchanged at 1.4 cents yesterday.