Fatfish Group (ASX:FFG) increases stake in Smartfunding to...

Fatfish Group (ASX:FFG) increases stake in Smartfunding to 89.4pc

Finance

ASX:FFG MCAP $108.1M

Jessica De Freitas Markets Reporter [email protected] 22 April 2021 12:00

• Through a rights issue, Fatfish Group (FFG) has increased its stake in Singapore-based subsidiary Smartfunding
• Fatfish subscribed to $300,000 worth of shares which increased its direct shareholding from 19.9 to 39.95 per cent
• The venture capital firm says increasing its interest will strengthen its position in the Southeast Asia market
• Fatfish Group's Swedish subsidiary, Abelco Investment Group, also participated in the rights issue which saw it gain a 49.4 per cent stake in Smartfunding
• Combined with ABelco's stake, Fatfish holds a total 89.4 per cent interest in Smartfunding

Fatfish Group (FFG) has increased its stake in Smartfunding from 78.7 per cent to 89.4 per cent.

Smartfunding is a Singapore-based fintech platform licensed by the Monetary Authority of Singapore. The subsidiary recently launched its buy now, pay later financing program to small-to-medium businesses in Southeast Asia.

Fatfish raised its stake by participating in a rights issue which was approved by the Singapore Central Bank.

Subsequently, the rights issue saw Fatfish subscribe to $300,000 worth of shares, which increased its direct shareholding from 19.9 per cent to 39.95 per cent.

"By increasing our direct stake in Smartfunding, we will be in a stronger position to drive the business forward and to provide Smartfunding with all the support it needs to succeed," FFG CEO Kin W Lau said.

Meanwhile, FFG's Swedish subsidiary, Abelco Investment Group, took up a portion of the rights issue worth $200,000. This resulted in it gaining a 49.4 per cent stake in Smartfunding.

Together, the 39.95 per cent and 49.4 per cent stake brings Fatfish Group's total direct and indirect interest in Smartfunding to 89.4 per cent.

Both companies funded their subscription from existing working capital.