Lateral goes private in $3.2 million deal

NZAX-listed mobile payments company Lateral Corp is the vehicle for a backdoor listing in a $3.2million deal with property developer Golden Tower NZ.

In a transaction valued at $3.2million, Auckland-based Golden Tower will pay $1.6million in cash and add as an asset a commercial property valued at $1.6million for new shares, giving it a 90% shareholding in Lateral. The deal is dependent on shareholder approval, Lateral said in a statement.

Golden Tower, which was incorporated in May 2016 according to Companies Office filings, intends to develop residential property around New Zealand and to sell building materials for wholesale and retail.

Golden Tower’s sole shareholder is Kawo Chan, and its sole director Hongwen Song, who was also a shareholder until November 22.

Lateral’s existing business will be spun into a new company called Lateral Profiles. Shareholders will get shares in Lateral Profiles in proportion to their current shareholding in Lateral, effectively privatising the business, while retaining a minority stake in Golden Tower.

The board said Lateral would be better served as a private company in the short to medium term, with fewer compliance costs, and the sale would put it in a good position to achieve its long-term goals.

Shares dropped 70% this year, last trading on the NZAX at 5c. Lateral Corp joined the market at 20c in a compliance listing in August 2014, valuing it at $4.15million.

Add a Comment