Singapura Finance has disposed of all of its shares in MatchMove PowerBank (PowerBank), a subsidiary of MatchMove Pay (MatchMove), to MatchMove for a consideration of US$1 mil ($1.33 million).
The shares represent approximately 10% of PowerBank’s share capital.
The sales consideration was satisfied by the issuance of 117,371 preference shares in MatchMove. To that end, Singapura Finance’s shareholding in MatchMove has increased from 1.6% to 1.9% of MatchMove’s share capital on a fully diluted basis.
PowerBank had originally been incorporated by MatchMove in 2020 for the purpose of applying for digital banking licenses in Singapore and other ASEAN countries. Singapura Finance had become a shareholder of PowerBank in October 2020 when it invested $3 million in the company via equity and debt financing.
SEE:MAS calls on Hong Leong Finance, Singapura Finance, Sing Investments to cut dividends too
According to a filing to SGX dated May 24, PowerBank, which did not obtain a digital banking license from Singapore, still intends to apply for digital banking licenses from other ASEAN countries.
However, given that Singapura Financing is "a Singapore-focused lender" and its interest was "exclusively in backing a Singapore digital bank”, the group has decided to refocus its investment to MatchMove, which the group views still has “possible long-term significant growth potential”.
The book value of the shares stood at $1.32 million as of Dec 31, 2020. The disposal is not expected to have a material impact on the net tangible assets or earnings per share of the group for FY2021 ending December.
Shares in Singapura Finance closed flat at 81 cents on May 24.
