18 Jan YuuZoo Gets Access to Market to 37 Million Registered Users in 7 Key Markets, New e-Sports Gaming Revenue and 6.7 Million SGD in Loan Repayment Through Partial Acquisition of IAHGames
- YuuZoo Corp and IAHGames sign final and complete agreement for YuuZoo’s acquisition of 30% of IAHGames
- Acquisition gives YuuZoo access to IAH’s 37 million registered gamers in 7 markets in SouthEast Asia, to whom YuuZoo can crossmarket YuuZoo services and games
- Acquisition also includes IAHGames conducting all of its sales, which in both 2013 and 2014 exceeded SGD 30 million, through YuuZoo’s e-commerce platform
- IAHGames further agrees to repay to YuuZoo its loan of 6.5 million SGD
Singapore, January 18th 2016: Singapore-listed YuuZoo Corporation (“YuuZoo” SGX: AFC) is pleased to announce* that it has acquired 30% of Infocomm Asia Holdings Pte Ltd (“IAHGames”). The payment to IAH shareholders will be done by the issuance of 15 million new YuuZoo shares.
IAH is a leading distributor of online and box games in SouthEast Asia. During 8 years of operations, IAH has built a registered user base in SEA of over 37 million users. The company has distributed and or published leading games such as FIFA OnLine, GuLong OnLine, Grand Theft Auto, Counterstrike OnLine and Granado Espada. In both 2013 and 2014, it had annual revenues of over 40 million SGD. Under the now signed agreement all the game business will be transacted through YuuZoo’s e-commerce platform, adding to both YuuZoo’s topline and bottomline.
The total cost for YuuZoo of the agreed acquisition, at today’s share price, equals SGD 2.39 million, through the issuance of 15 million new YuuZoo shares, equalling 2.3% of YuuZoo’s issued shares.
IAH’s publishing and marketing partners include in Vietnam the VTC Online, a subsidiary of Vietnam Multimedia Corporation (VTC), with a reach to a large portion of Vietnam’s 90 million inhabitants, and in Thailand, with 66 million inhabitants, True Digital, a subsidiary of True Corporation, a communications conglomerate controlling Thailand’s largest cable TV provider TrueVisions, Thailand’s largest ISP True Internet, and its third largest mobile operator True Move.
Says YuuZoo Chairman Thomas Zilliacus: “We are very happy that we finally have been able to conclude the long planned deal with IAH. While we initially planned to buy all of IAH, this partial acquisition gives YuuZoo the same benefits as a full acquisition would have done, but at a much lower cost to YuuZoo’s shareholders. It also includes the repayment to YuuZoo of the 6,5 million SGD that IAH had borrowed from us.
Games are a key revenue generator in social networking worldwide. Games provide major stickiness to social media. IAH’s partners in Vietnam and Thailand, VTC and True Corporation, are the kind of leading TV and media companies YuuZoo wishes to partner with. The founder and CEO of IAH, Roland Ong, before launching IAH built a hugely successful game franchise in China. His contacts and network in China can add value in a market where YuuZoo has built a very strong position over the last 12 months”.
Says the Founder and CEO of IAH, Roland Ong: “I am very excited to see this deal finally happening. IAH believes YuuZoo will grow significantly in value over the near future. A recent analyst report by a leading bank, published on January 12th 2016, states that YuuZoo at its current share price trades at a discount of some 60% to its peers. We believe strongly in the multiplier effect of combining Yuuzoo’s unique social e-commerce strategy with our gamer’s network, which is why we have accepted to receive the payment in YuuZoo shares. We believe the base of 37 million gamers IAH has built will be keen to join the targeted social e-commerce networks YuuZoo offers to consumers, and keen to play the new mobile games YuuZoo has acquired. Together with YuuZoo, I believe we can grow the revenues of IAH significantly, and add to YuuZoo’s already impressive top and bottom-line”.
ABOUT IAH: Headquartered in Singapore, IAHGames is a leading publisher, operator and distributor of interactive entertainment. The company has operated and distributed award-winning titles including Granado Espada, Counter-Strike™ Online, SuperStar Live, FairyLand 2,, New PAL Online, New Gulong Online, Blacklight Retribution, XAOC Online, Bella Online, Warframe, Spirit Horizon, War of Fate, NBA 2K14 and Grand Theft Auto V. One of the first online game companies in the world to receive ISO 9001:2000 certification for “Distribution and Operation of Online Games”, IAHGames executes a unique “One Market, One Asia” strategy that offers developers and publishers a one-stop distribution service for multiple countries. For more information on IAHGames, please visit: http://www.IAHGames.com
ABOUT YUUZOO: Headquartered in Singapore and listed on the SGX mainboard (SGX: AFC.SI), with access to over 110 million registered consumers in 164 countries, YuuZoo in a unique way combines social networking, games and e-commerce in a mobile-optimized, fully localized “tribal playground”, where the user, through one single login, can join the tribe of his choice through access to hundreds of targeted social networks, equally targeted shops, offering a perfect mix of global and local merchandise, and targeted entertainment and games. All networks are, through an extensive network of franchisees and partners, localized for each market as comes to language, merchandise and design. To see the networks, log into: www.yuuzoo.com.
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*Note: This agreement was first announced on December 31st 2015.Please see here for details of the announcement on SGX: http://infopub.sgx.com/Apps?A=COW_CorpAnnouncement_Content&B=AnnouncementLast3Months&F=5NIQ0509EQVDDSK4&H=22f93f7deb9f70d8d7bc8acea9912e79dc7e3e63216ccbf1b2a6fa02fcd7a282