- Fatfish Blockchain has accepted a $12.7 million offer from Abelco Investment for the merger of its Swedish venture building subsidiary
- The deal will see Abelco purchase 81 per cent of Fatfish’s holding in the Swedish company
- This merger will create a leading investment company with an international presence in more than 20 countries
- Fatfish’s share price is up 40 per cent with shares trading for 1.4 cents apiece
Fatfish Blockchain is up 45 per cent today after it received a binding offer from Swedish-listed Abelco Investment Group AB.
The company agreed to $12.7 million for the merger of its Swedish venture builder subsidiary Fatfish Global Ventures (FGV) with Abelco Investment.
Listed on the NGM Nordic MTF (nordic growth market), Abelco invests in companies is areas such as industry, engineering and technology which are in need of growth capital.
As of June 30, 2019, the company’s market cap is SEK85 million (AUD$12.87 million) and it has total assets of SEK76.9 million (AUD$11.6 million).
Fatfish sees this transaction as an alternative path for FGV to pursue its listing in Sweden, fast-tracking the growth of the construction company.
This merger will create a leading investment company with an international presence from the Nordic countries to Southeast Asia with a portfolio exceeding 20 holdings.
“A combined Abelco-Fatfish creates good opportunities for expansion of the portfolio companies through joint hubs in both Stockholm and Singapore,” Abelco Chairman Kenneth Arnström said.
“Through the transaction, Abelco will gain access to important structural capital that significantly improves the company’s future opportunities in attracting important Swedish start-ups given scope to Southeast Asia,” he added.
Under the transaction, Abelco will purchase Fatfish’s 81 per cent holding in FGV for a purchase consideration of SEK84.5 million (AUD$12.7 million).
This will be settled through the issue of 704,410,476 million new shares at a price of SEK0.12 (AUD$0.018) per share.
Post-transaction FGV will hold approximately 50.1 per cent of the enlarged share capital of Abelco.
However, the completion of the transaction is subject to the approval of the transaction by the shareholders of Abelco at a general meeting having been obtained.
Abelco has pre-sought an exemption from Swedish Security Council to exempt Fatfish from undertaking a mandatory bid for all outstanding shares in Abelco.
Fatfish’s share price is now up 40 per cent with shares trading for 1.4 cents apiece at 1:05 pm AEDT.