Silverlake Axis to hold around 44 percent of Finzsoft after exiting joint venture

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Silverlake Axis will end up holding around 43.59 percent of New Zealand-listed software company Finzsoft Solutions after exiting the joint venture, Silverlake HGH (SHGH), which had owned the stake, the Singapore-listed financial software company said in a filing to SGX Wednesday.

SHGH, formed in 2014 to make a takeover offer for Finzsoft, was 51 percent-owned by Silverlake Axis and 49 percent-owned by HGH (ICT Investments No.2), the filing said.

Under the deal to unwind the joint venture, SHGH will sell all of its 7.53 million Finzsoft shares, with 3.84 million shares going to Silverlake Axis and the remainder to HGH, the filing said.

“Due to differences between the company and HGH, they have agreed to terminate the joint venture arrangement and to hold shares in Finzsoft directly. The proposed transfer is undertaken as part of a restructuring exercise to achieve the above purpose,” Silverlake Axis said.

The consideration paid to SHGH for the shares will be the fair market value on the settlement date, offset by the amount of shareholders’ loans SHGH owes to both Silverlake Axis and HGH, the filing said.

Based on Finzsoft’s 28 August closing price of NZ$1.12, the consideration for the shares would be a total of NZ$8.43 million (S$7.43 million or US$5.35 million), with Silverlake Axis owing NZ$4.30 million, the filing said, noting the shareholder loan owed to Silverlake Axis was NZ$11.76 million.

As of 14 August, SHGH held cash of NZ$36.65 million, Silverlake Axis said.

The transfer will require approval from Finzsoft’s shareholders, the filing said.

Finzsoft mainly develops computer software, and its flagship product, Sovereign, offers services supporting banks, building societies, credit unions and finance companies in the Asia Pacific region, the filing said.

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