Singapore eDevelopment buys IM and social media developer HotApps
By Digital News Asia August 13, 2014
- Also signs MoU with China’s CloudTel which has developed interactive terminals
- Part of strategic shift to grow via ICT and property development businesses
SINGAPORE eDevelopment Ltd (SeD) announced it is buying software developer HotApps International Pte Ltd, which owns applications for instant messaging (IM), social media and e-commerce platforms.
It has also entered into a Memorandum of Understanding (MoU) to acquire telecom hardware and software developer CloudTel Pte Ltd, SeD said in a statement.
SGX Catalist-listed SeD said the acquisition of a 100% stake in HotApps and its MoU with CloudTel are part of a major strategic shift to propel corporate recovery and future growth via info-communications technology and property development.
SeD unveiled these two sectors as new engines of growth in May after disposing its legacy Singapore-construction business which had led to major losses and liabilities in the financial year ended Dec 31 2013 (FY2013) that spilled over into FY2014, the company said.
It is buying the entire stake in Singapore-registered HotApps from its shareholder and chief executive officer Chan Heng Fai for S$98,000 (US$78,307).
HotApps intends to launch its flagship mobile application that combines IM, e-commerce and other enhanced features in Singapore before the end of the year.
“We are confident of securing a high subscription rate as the platform will fill many gaps in the existing IM and social media landscape,” said Chan.
CloudTel chief executive officer (CEO) Jacky Zhuang has more than 15 years of experience, including 10 years in the United States with a Fortune 500 company, SeD said.
Upon completion of the acquisition, Zhuang will be invited to join SeD as CEO of the Group’s IT businesses, including HotApps.
CloudTel, a cloud-based communication solutions provider based in China, has developed a desktop interactive cross-platform smart terminal running on the Android operating system.
The 10-inch terminal would enable low-cost, high-quality international voice and video calls and other value-added features, and is intended to replace traditional desktop phones in homes, offices, hotels and the healthcare sector, SeD said.
The terminal will enable advertising applications on a revenue-sharing basis with businesses and telecommunications companies.
SeD said that CloudTel is currently in talks with several major telcos to offer the terminals to the Chinese market.
The proposed acquisition of CloudTel is subject to an independent valuation and a shareholder vote. Depending on the valuation and final acquisition price, SeD intends to satisfy the purchase via the issue of new shares and/ or corporate bonds.
“Businesses and individuals worldwide want lower costs for international voice and video calls, and smarter IM platforms that can be customised which can generate new revenue streams,” said Chan. “HotApps and CloudTel meet these needs.”
SeD shareholders this month approved its diversification into IT and a proposal to issue up to 12 rights shares at 0.3 Singapore cent each for every existing share held, and one bonus share for every Rights Share subscribed for.
The net proceeds of between a minimum of S$3.3 million and maximum of up to S$129.1 million will be partially used to fund new businesses in property development and IT. [S$1 = US$0.80]
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