Singapore and Indonesia-based mobile social networking company mig33 has listed itself on the Australian Securities Exchange in a much easier way. Yesterday Mig33 announced to have been acquired by Latin Gold, a firm dealing with commodity exploration and development opportunities listed on the Australian Securities Exchange (ASX).
The social networking company that rebranded itself into a mini-blogging platform in October last year, with three million monthly active users, apparently got itself listed on ASX via the reverse IPO methodology – where if a non-listed company owns more shares of a listed company than the original shareholders, the non-listed company will automatically take on the characteristics and status of the listed company.
mig33 got acquired in return for the issue of 720 million shares to its various shareholders. The acquisition will also see mig33 own 69.5 percent of Latin Gold while Latin Gold shareholders will own approximately 30.5 percent of the merged group.
Founder and CEO Steven Goh, together with Andy Zain, Dmitry Levit, and John Lee will be appointed to the Latin Gold board. This would also mean three of the Latin Gold directors will step down, which gives mig33 full authority to drive the Latin Gold business. Latin Gold’s name will be changed to mig33.
Speaking to Tech In Asia, Steven Goh stated that, “We believe in the opportunity to bulk mig33 up to something much more interesting now and being listed allows us to realize that opportunity. [We] looked at Singapore and Australia [and believe that] Australia is a simpler, less risky, and easier path to getting there. Additionally, Australian tech companies are getting recognized valuation-wise and there is a history of billion dollar exits, whereas in Singapore the feedback is mixed.”