Singapore Exchange (SGX)-listed real estate developer, Asia-Pacific Strategic Investments 5RA , has agreed to acquire a 100% stake in Mobii Genius Co., Ltd, for US$150 million ($201 million). The consideration will be paid via the allotment and issuance of 41.6 billion shares from the former to the latter at an issue price of 0.483 cents per share.
On April 2, Asia-Pacific Strategic Investments entered into a conditional sale and purchase agreement (SPA) with Mobii Genius’ parent company, Mobii Green Energy to acquire Mobii Genius.
Mobii Green Energy is a Taiwanese renewable energy solutions firm that specialises in environmental, social, and governance (ESG) for technology companies. Mobii Genius is a special purpose vehicle (SPV) that was set up to provide efficient and low carbon emissions data processing and storage services, including the prospective development of green energy data centre businesses in Southeast Asia.
The proposed acquisition, if undertaken and completed, will result in a reverse takeover (RTO) of Asia-Pacific Strategic Investments. The move is subject to SGX-ST’s approval and the company’s shareholders.
In a statement dated April 8, Asia-Pacific Strategic Investments says it will be leveraging Mobii Genius’ proprietary green technology. The technology is powered by chips specially manufactured in partnership with an international graphics processing unit (GPU) company.
Mobii Genius will provide carbon-neutral computing equipment at the upcoming facilities, namely low-power processors and energy-efficient data processing algorithms.
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According to Asia-Pacific Strategic Investments, the move comes as Southeast Asia’s digital sector, the world’s fastest-growing internet economy, is projected to produce 20 million tonnes of carbon emissions by 2030.
The company said that it has been looking to explore new investments and strategic acquisitions to improve the quality of its business operations and enhance its financial performance considering its real estate business in China has been affected by the country’s real estate crisis.
Asia-Pacific Strategic Investments specialises in the building of hospitality facilities and retirement villages. Tycoon Oei Hong Leong is the largest shareholder in the company with a 35.75% stake as at June 2023.
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The proposed acquisition will also allow the company to enhance value for its shareholders by generating renewed investor interest in the enlarged group and create potential for it to grow its value with a wider investment base.
As at Dec 31, 2023, Mobii Genius has net liabilities of NT$7.1 million (or around $304,000 based on the exchange rate of NT$100 to $4.291). The company recorded a net loss of NT$8.1 million for the FY2023 ended Dec 31, 2023.
For the FY2023 ended June 30, 2023, Asia-Pacific Strategic Investments reported a loss of $6.7 million, a 62.0% improvement y-o-y from its loss of $17.7 million in the FY2022.
“Creating green data processing and storage facilities is of paramount importance, especially as data is now the bedrock of so many aspects of our lives, from business to essential services,” says Dato’ Dr Choo Yeow Ming, Chief Executive Officer of Asia-Pacific Strategic Investments. “While we have traditionally focused on the hospitality business, this acquisition will be a step forward in revitalising APS and enhancing shareholder value. We now look to grow sustainably alongside the climate resilience of the tech industry.”
“Our data infrastructure and the environment must both be healthy for the other to flourish. Mobii’s green technology has been specifically designed over the years to do just that: decrease energy waste while increasing efficiency. This acquisition by Asia-Pacific Strategic Investments is poised to help make this technology more accessible to more regions, starting with our expansion into Southeast Asia," adds Tseng Kuan-Chih, Chief Executive of Mobii Green Energy Co., Ltd.
As at 11.44am, shares in Asia-Pacific Strategic Investments are trading flat at 0.1 cents.
