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US firm buys Singapore instant messaging developer HotApps for S$876m

Yingge

Alfrescian (Inf)
Asset
This is what we call creative which jiu hu kia Tony do not know... He only know google nose...:rolleyes:
 

Poomer

Alfrescian
Loyal
SINGAPORE: United States company Fragmented Industry Exchange (FIE) will be buying Singapore eDevelopment's (SeD) subsidiary, HotApps International, for US$700 million (S$876 million).

In a press release on Thursday (Sep 4), the Singapore Exchange (SGX) Catalist-listed SeD said FIE will acquire HotApps for 1 million new shares at US$10 each and US$690 million worth of zero-coupon perpetual bonds - for a total of US$700 million. Once the deal is completed, FIE will hold HotApps - an instant messaging software developer - as a wholly owned subsidiary, it said.

SeD, in turn, will own 99.84 per cent of FIE, assuming full conversion of the bonds and the exercise of a call option, it added.

"This transaction will bring with it two significant benefits. The first is that HotApps will be able to tap the US capital markets to fund its growth. The second is that we will be able to accelerate the launch of HotApp - the flagship application of HotApps - in the US and Latin American markets," said Mr Chan Heng Fai, CEO of SeD.

FIE has applied to be listed on an over-the-counter bulletin board, which is an electronic inter-dealer quotation system facilitated through the Financial Industry Regulatory Authority of the United States.

By parking HotApps under FIE, SeD hopes to capitalise on the bigger pool of investors in the US to fund the growth of the IM developer. It also looks to accelerate the development and deployment of its flagship app in 24 countries, including Singapore, before the end of 2014, according to the company.

SeD had acquired HotApps International, a Singapore-based virtual startup, for S$98,000 in August this year. The Catalist-listed company identified infocommunications technology (ICT) and property as its two main growth engines, according to its website.

Creative bookkeeping? Reverse takeover + cooking the books

Step 1: Buy a $98,000 company.
Step 2: Sell it to a random company for $700 million in bonds and shares. Of which you'll have 99.84% share of the company?
Step 3: Find US tech investors to invest in the start-up.
Step 4: Cash out when the value of the company skyrockets.
Step 5: Find another $98,000 company.
 

Yingge

Alfrescian (Inf)
Asset
Creative bookkeeping? Reverse takeover + cooking the books

Step 1: Buy a $98,000 company.
Step 2: Sell it to a random company for $700 million in bonds and shares. Of which you'll have 99.84% share of the company?
Step 3: Find US tech investors to invest in the start-up.
Step 4: Cash out when the value of the company skyrockets.
Step 5: Find another $98,000 company.

You think so easy??? You go try to buy a $98,000 company and see whether US firm buy from you $700 million!!!:rolleyes:
 

krafty

Alfrescian (Inf)
Asset
in states, they will have regular meetups for investors in the form of meetings and presentations, those companies looking for funds normally get it from there.

You think so easy??? You go try to buy a $98,000 company and see whether US firm buy from you $700 million!!!:rolleyes:
 
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frenchbriefs

Alfrescian (Inf)
Asset
i dont understand wtf is this....

i mean wtf.....a US company FIE is buying hotapps for 1 million shares and $690m worth of worthless bonds,from SED......but SED owns 99.8% of FIE if they choose to exercise their bond rights...

wtf so SED a singapore government agency is lending 690million to a us company and they use the 690m to buy this goddam app from SED,then when they recall their bonds they own they will own 99% of FIE who owns hotapps....one whole round and SED will end up owning hotapps and FIE and 690 million will end up god knows where???
 

krafty

Alfrescian (Inf)
Asset
if i read it right, hotapp's motive is to penetrate US markets. so even if it sounds like US are buying sinkie company, it doesn't matter.
 

halsey02

Alfrescian (Inf)
Asset
if i read it right, hotapp's motive is to penetrate US markets. so even if it sounds like US are buying sinkie company, it doesn't matter.

If are they using funds from GIC, Temasek ?? then, we all are 'regularly penetrated"...
 

Bigfuck

Alfrescian (Inf)
Asset
Part of FDI roundtripping. But shit is shit. TH was trying to create the next best joke by creating the next youtube a few years ago. Their f-uped dog recruiter did not even know his computer stuff. Was trying to cow a designer with excellent resume to do coding.
 

Poomer

Alfrescian
Loyal
You think so easy??? You go try to buy a $98,000 company and see whether US firm buy from you $700 million!!!:rolleyes:

If you have big backers, why not? And take note, not a single cent was paid out to SeD, it's all in bonds and shares. It's clearly a reverse takeover of FIE of a shell US company.

Company Financials

Revenue --
Net Income -$49,476
Total Assets $1,444
Total Liabilities $67,295
Stockholders' Equity -$65,851

Read more: http://www.nasdaq.com/markets/ipos/...inc-930398-74955?tab=financials#ixzz3CL116npJ

The company have cash reserves of $1,444 and paid up capital of $66,187. So how the fuck does $700 million dollars magically appear?
 

Poomer

Alfrescian
Loyal
I think this is how the US print money

I think you may not be off the mark. FIE will probably sell shares in their subsidiary, SeD to their shareholders at a discounted price for being such loyal shareholders. For every $1 share in their 700 million dollar subsidiary, you can buy at $0.20cents, and suddenly a company worth $10,000 + the $98,000 they used to buy Hotapp, let's round it up to $200,000, is worth $700 million, and if 5% of the shareholders buy into it, they'll suddenly have $7 million. Not a bad return for some $200,000 and some creative bookkeeping.
 
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