By Phil Boeyen, ShareChat Business News Editor
Tuesday 29th August 2000
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ITC and Singapore's Plan-B Technologies will hold just under 6% of each other's companies as a result of the swap, with Plan-B paying the equivalent of S$3.2 million for its stake - a premium of around 22.5% over the recent market price.
Plan-B, which is described as a "high tech incubation company", will also subscribe in cash for 5 million newly issued ITC shares at market price.
IT Capital's CEO, Jeff Dittus, says the deal provides his company with the strong Asian partner that it needed.
"The synergies between both parties are clear and compelling. Together, we can offer investee companies a unique platform of capital, management expertise, access to new technologies and importantly too, accelerated time to market."
Plan-B chairman, Lim Soon Hock, describes the alliance as a natural fit.
"We now have access to a wider pool of human capital, investment capital and physical capital to allow both our companies to do a better job of helping hi-tech companies succeed. The share swap essentially formalises our relationship and collaboration."
ITC says it will also have the chance to co-establish and take part in a US$100 million technology fund initiated by Plan-B in Singapore. The new fund's primary focus will be to support early-stage investments in both firms' portfolios and, as a secondary focus, invest in mid-stage and late-stage companies in IT, telecommunications, internet and e-commerce.
Plan-B is one of three "incubation management companies" appointed by Singapore's National Science and Technology Board under its Technology Incubator Programme.
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