Fatfish accepts A$12.7mn offer for its Swedish subsidiary from Abelco

MELBOURNE: Fatfish Blockchain Limited (FFG) has received and accepted a A$12.7 million offer for the merger of its Swedish venture builder subsidiary Fatfish Global Ventures AB (FGV). The offer came from Swedish-listed Abelco Investment Group AB, a well traded venture investment firm by way of a merger proposal.

Under the offer, FFG will dispose of 81% shareholding in FGV to Abelco in return for listed shares worth A$12.7 million or 50.1% of the enlarged share capital of Abelco. FFG will retain its existing blockchain portfolio and its A$1.1 million in cash reserves on hand.

The merger will create a tech “powerhouse” – a leading venture investment company with an international presence from the Nordic region to Southeast Asia with a portfolio exceeding 20 holdings. FFG currently has a market capitalisation of approximately A$7.4 million and has net assets of A$28.5 million as at 30 June 2019 .

 FFG CEO Kin Wai Lau commented “We are extremely excited to be working with Abelco and welcome this offer. From a shareholder’s perspective, we are impressed by the Swedish market and its advanced position and capabilities regarding start-ups in most areas, including fintech and other digital services. Being able to combine this with combined organizational strength of Abelco and FGV through our offices in Stockholm and Singapore and our portfolio holdings provide good conditions for an accelerated growth in Europe, with a focus on the Nordic region, as well as the market in Southeast Asia. It is with great hope that we look forward to working closely with the Abelco team.”

Abelco Chairman Kenneth Arnström commented “A combined Abelco-Fatfish creates good opportunities for expansion of the portfolio companies through joint hubs in both Stockholm and Singapore. In addition, the new Abelco is given a far more advanced position with the possibility of more acquisitions and a faster path to the market for acquired companies. 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. The new Abelco achieves important synergies such as more efficient exit processes and lower operational costs in relation to the number of holdings in the portfolio, while increasing the potential of attracting new investment and faster value creation. It is with great confidence that I look forward to the new Abelco.”

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