A US company, Fragmented Industry Exchange (FIE) Ltd. is purchasing the Singaporean instant messaging software developer, HotApps Interntional Pte Ltd., for Us $ 700 million in shares and perpetual preferred shares.
A press statement by Singapore eDevelopment (SeD) Ltd., the holding company that owns HotApps International Pte Ltd. said the intended purchase is the result of FIE's having signed with it a definitive agreement for such.
It added the purchase will serve as a prelude to the launch of the IM applications in North and South America.
The press statement said FIE will issue one million new FIE shares at US $ 10 each and US $690 million worth of perpetual preferred shares (PPS) to acquire HotApps International Pte Ltd from SeD.
Upon completion, SeD will receive 13.8 million in PPS to be converted to 69 million common shares of FIE.
Assuming full conversion of the PPS, SeD will own 94.3 % of FIE, which in turn will hold 100% of HotApps.
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