Ayondo to Acquire Equity Interest
Ayondo Ltd., a Catalist-listed investment holding company, announced that it had entered into a conditional sale and purchase agreement. This took place with Speed Success Group Limited, as the pandemic continued to weigh on the firm.
On Sunday, the 2nd of August, Ayondo presented its 2019 Annual Report. The report said that on July 29, 2020, the firm entered this agreement.
With Speed Success Group, Ayondo will acquire the entire equity interest in the Rich Glory International Investment Limited.
The proposed acquisition follows the ongoing efforts from Ayondo. It has been seeking the injection of a sustainable business.
The company offloaded its key operations in the United Kingdom. Moreover, BUX acquired the unit last year.
Following this, the Group’s German subsidiary in August 2019 had filed for insolvency.
Acquisition to Result in Reverse Takeover
If the proposed acquisition is completed, then a “Reverse Takeover” of Ayondo is expected. The transaction is subject to the approval of the company’s shareholders during an assembly of a general meeting.
It is also subject to the green light from Singapore Exchange Securities Trading Limited.
Rich Glory specializes in lending for residential mortgages, commercial mortgages as well as shareholder loans.
The proposed acquisition intends to allow Ayondo to resume trading of its shares on the Catalist board. This was according to the annual report.
Ayondo said,to rebuild shareholder value, the company has been seeking an appropriate business to be injected into the Group. The company is of the view that the Proposed Acquisition will place it in a strong position. That includes expansion into new business areas and growing revenues, both of which will help rebuild shareholder value.
Ayondo Ltd 2019 Financial Results
The firm has also provided its financial results for 2019. Here, Ayondo recorded its profit net tax of CHF 14.89 million. However, it also posted an operating loss of CHF 1.55 million.
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