Singapore’s Vertex Technology Acquisition Corp (VTAC) will buy live streaming platform 17LIVE Inc for up to S$925.1 million ($676 million), the special purpose acquisition company (SPAC) backed by state investor Temasek said on Monday.
The deal is the first purchase of a private company by a SPAC listed in the city-state since 2021 when the Singapore Exchange allowed SPACs, or shell firms, to float shares in a bid to position itself as a hub for this type of vehicle in Asia.
VTAC was Singapore’s first SPAC to be listed, going public in early 2022 and raising about S$200 million.
The pro-forma equity value of VTAC’s proposed deal would be up to S$1.16 billion, it said.
VTAC would also raise funds from institutional or accredited investors, or a combination of both, by way of private placement in relation to the deal.
VTAC shares have risen 6.2% so far this year, while Singapore’s benchmark stock index is down around 1%.
17LIVE Chairman and co-founder Joseph Phua said the listing would allow the company to grow in Southeast Asia and globally.
17LIVE had just over half a million average monthly active users in the first half of fiscal 2023 and counts Japan and Taiwan as its key markets.
It generated revenue of $363.7 million in 2022 and has been profitable since 2020.
“We see 17LIVE as a company at its inflection point, backed by a strong management bench,” VTAC Chief Executive Jiang Hong Hui said in a statement.
Source: Reuters.com