Singapore-based VoIP and ISP Spice i2i has said it postponed the acquisition of the Affinity Group, an Indonesian handset distributor, until 16 May following valuation issues.
Spice i2i said in notice to the Singapore Stock Exchange that Affinity…
Singapore-based VoIP and ISP Spice i2i has said it postponed the acquisition of the Affinity Group, an Indonesian handset distributor, until 16 May following valuation issues.
Spice i2i said in notice to the Singapore Stock Exchange that Affinity appeared to have overstated its net assets, as of 31 December 2010, by about US$10m to US$32.6m.
“These are preliminary findings of the company’s internal team and the company is seeking clarification from the Affinity Group on this issue. The company is also separately seeking guidance from a local adviser on this issue,” Spice i2i said in the notice.
In late March, local newspapers reported that 88% of the company’s shareholders had agreed to the purchase of Affinity for US$100m-US$175m depending on performance, as well as to a plan to raise funds through a rights issue, managed by DBS. ANZ and DBS advised Spice i2i on the acquisition.
Also in the notice, Spice i2i said that it might consider a merger with Indian handset maker Spice Mobility.
“The suggestion to do so came from the most recent meeting with stakeholders of Spice Mobility, who mooted the idea since both companies share a common synergistic supply chain and a common brand. No plan or proposal have been presented to the board or the company with respect to this matter,” read the notice.
