Starland Holdings, a listed corporation on SGX Catalist, the secondary board of the Singapore bourse, will acquire financial technology (fintech) firm Ayondo Holding AG for S$157.5 million ($117.4 million).
According to a stock exchange filing, the purchase is through the issuance and allotment of new fully paid-up ordinary shares in the share capital of Starland.
In a statement, Starland commented: “The proposed acquisition would present the group with an opportunity to expand its business in line with its diversification strategy into the fintech business, which will allow it to achieve a more consistent and sustainable financial growth.”
Post-acquisition, its shares will be consolidated to meet Singapore Exchange’s Minimum Trading Price rule of 20 cents each, with the transaction seeing a reverse takeover of Starland. The deal is conditional upon the approval of its shareholders in an extraordinary general meeting.
Ayondo provides social trading services and brokerage services for both B2C and B2B customers. It is licensed and regulated by the Financial Conduct Authority (FCA) in the United Kingdom (UK) and the Federal Financial Supervisory Authority (BaFin) in Germany. It was formerly listed on the Berne Stock Exchange under the name of Next Generation Finance Invest AG as an investment holding company.
Starland is a subsidiary of Mainboard-listed industrial product supplier GRP, which made an offer for the takeover of Starland in January 2016, following the acquisition of a 82.91 per cent stake for S$28.3 million.