(Alliance News) - Shares in Bowen Fintech PLC were suspended from trading in London on Friday as the acquisition vehicle announced an agreement to buy a company that operates a "leading" crowdfunding services platform for real estate in Japan.
Bowen Fintech said it has agreed to buy 93.5% of the shares of Minnadeooyasan-Hanbai Co Ltd, known as MOH, for GBP34.5 million, all in new Bowen shares issued at 15 pence each.
Bowen Fintech was last quoted at 12.85p. Shares were suspended from trading on the London Main Market from Friday's open, as the acquisition is a reverse takeover, pending readmission of the enlarged company.
Bowen said it expects to have a market capitalisation of GBP42.7 million upon readmission, with Kyosei Bank Co Ltd, the majority owner of MOH, holding 80.7% of the shares and existing Bowen shareholders retaining the remaining 19.3%.
MOH is based in Tokyo and works with investors seeking returns from real estate investment. It arranged capital raising of JPY62 billion, about GBP378 million, in the financial year that ended March 31. That year it recorded earnings before interest, tax, depreciation and amortisation of JPY519 million, about GBP3.2 million, on revenue of JPY5.6 billion.
"In addition to traditional real estate asset classes such as residential and commercial, MOH is seeking to facilitate funding for technology-driven commercial projects, such as cold-chain logistics facilities, state-of-the-art medical facilities and the revival of traditional cultural parks," Bowen explained.
"MOH intends to participate in building cutting-edge cold-chain logistics infrastructure in Japan and expects to replicate this model in ASEAN countries and beyond in the future as part of its growth strategy."
By Tom Waite, Alliance News editor
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Bowen Fintech (BWN)