Fatfish (ASX:FFG) closed higher on purchase of JazzyPay

Image Source: © BCritchley | Megapixl.com

Highlights

  • Fatfish’s fintech subsidiary, ASEAN Fintech Group (AFG), has purchased 87.44% of JazzyPay.
  • After the acquisition, JazzyPay will be valued at AU$2.4 million and settled by the issuance of 24,878 new AFG shares.
  • Abelco Investment Group AB, a Swedish subsidiary of FFG, will control about 20.0% of AFG’s increased share capital.

The shares of venture capital investment firm, Fatfish Group Limited (ASX:FFG), traded in the green on Tuesday (April 19), closing 7.894% higher at AU$0.041 per share on ASX. The surge follows Fatfish’s ASEAN Fintech Group (AFG) acquisition of 87.44% of JazzyPay (digital payments provider) for AU$2.1 million.

After the acquisition, JazzyPay will be valued at AU$2.4 million and settled by the issuance of 24,878 new AFG shares.

The purchase of JazzyPay advances AFG’s ambition of becoming a regional multi-vertical fintech solutions provider. Following the acquisition, AFG will operate in the most dynamic SEA markets, including the Philippines, Malaysia, Indonesia and Singapore.

Moreover, AFG’s multi-vertical strategy concentrates on wealth management; Payments/Buy Now, Pay Later (BNPL), lending and insurtech.

The acquisition is anticipated to be completed within one week of this announcement.

The acquisition’s transactional details

FFG’s direct shareholding in AFG will decrease from 70.8% to around 67.2% when the consideration shares are issued, and the current repositioning and restructuring exercise is completed (as declared by FFG on March 3 2022).

Moreover, Abelco Investment Group AB, a Swedish subsidiary of FFG, will control about 20.0% of AFG’s increased share capital.

Source: © Gajus | Megapixl.com

About the companies

JazzyPay’s platform allows firms to accept online payments using 27 payment channels, including digital wallets, debit and credit cards, ‘pay later’ models and internet banking.

Fatfish Group Limited is a tech venture firm with operations in Southeast Asia and worldwide, with interests in gaming, fintech, and other tech-related initiatives.

FFG’s financial performance so far

While the financial sector has been on a roll, gaining 10% in a year, Fatfish has swung in the opposite direction, losing 68%. The firm’s stock failed to thrive in the middle of the year, and the loss persisted. FFG plunged 32% in last six months and 18% on YTD basis (year to date). Recently, the firm gained traction, with a 2% rise in one month.

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Good read: Why are small-cap stocks FFG, AHI and DTZ on investors’ radar today?

Road ahead

The acquisition will enhance AFG’s growth in the Philippines as FFG’s fintech arm. This aligns with the firm’s objective of expanding its multi-vertical fintech services and solutions into the region’s dynamic markets.

Good read: Fatfish’s (ASX:FFG) Fatberry raises funds to support product development


 


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