Days after announcing a drop in mobile revenue for last year, Chinese wireless value-added services firm Linktone Ltd. has now announced a new acquisition of a Singapore company.
Linktone announced that it together with its major shareholder, PT Media Nusantara Citra Tbk, have completed the acquisition of 75% of the share capital of InnoForm Group. InnoForm is a Singapore-based company with regional offices in Malaysia, Taiwan and Hong Kong, specializing in the development, distribution and licensing of edutainment and entertainment products. It is a leading VCD/DVD/CD distributors for both the English and Chinese language markets in Singapore and the Asian region.
"We are excited about the acquisition and proud to be a part of Linktone," said Steven Tan, managing director of InnoForm. "We look forward to working closely with Linktone as we continue to strengthen our multi-channel capability and capture the business growth opportunities."
Based on InnoForm's 2009 unaudited net profit after tax, which is approximately SGD2.14 million as calculated under International Financial Reporting Standards, Linktone and MNC agreed to pay SG 9.75 million in cash to acquire 75% of the share capital of InnoForm. Linktone and MNC will hold 50% and 25% of the share capital of InnoForm, respectively. In addition, Linktone and MNC have the option to purchase the remaining 25% of outstanding share capital, whereby 15% of the share capital can be purchased within 18 months, and the other 10% of the share capital can be purchased within 30 months, from the agreement date.
Last week Linktone announced that for the full 2009 fiscal year. WVAS and other revenues were USD62.2 million, compared with USD67.0 million in 2008. But last year's GAAP net income was USD0.1 million compared with a net loss of USD16.5 million in 2008.