Ayondo Ltd., a Catalist-listed investment holding company, recently announced that it has entered into a conditional sale and purchase agreement with Speed Success Group Limited, as COVID-19 continues to weigh on the troubled firm.
On Sunday, the 2nd of August, Ayondo said in its 2019 Annual Report that on the 29th of July 2020, the firm entered into a conditional sale and purchase agreement with Speed Success Group, where Ayondo will acquire the entire equity interest in Rich Glory International Investment Limited.
The proposed acquisition follows the ongoing efforts from Ayondo in seeking the injection of a sustainable business. As FortuneZ reported, the company offloaded its key operations in the United Kingdom, with BUX acquiring the unit last year. Following this, the Group’s German subsidiary filed for insolvency in August of 2019.
Acquisition to result in reverse takeover
If the proposed acquisition is completed, it is expected to result in a “Reverse Takeover” of Ayondo. The transaction is subject to the approval of the company’s shareholders at an extraordinary general meeting to be convened, as well as the green light from Singapore Exchange Securities Trading Limited (SGX-ST).
Rich Glory specialises in lending for residential mortgages, commercial mortgages and shareholder loans. According to the annual report, the proposed acquisition is intended to allow Ayondo to resume trading of its shares on the Catalist board.
“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 the Company in a strong position to expand into new business areas and grow revenues, both which will help rebuild shareholder value,” Ayondo said in the report.
Ayondo Ltd 2019 financial results
In addition to providing information on the proposed acquisition, the firm has also provided its financial results for 2019, in which Ayondo recorded profit net of tax of CHF 14.89 million. However, the company also posted an operating loss of CHF 1.55 million.