Fatfish Blockchain to bolster investment portfolio via Abelco merger

Fatfish Blockchain has accepted a $12.7 million offer for the merger of its Swedish subsidiary Fatfish Global Ventures AB.

Technology venture capital firm Fatfish Blockchain (ASX: FFG) has received a binding offer regarding its Fatfish Global Ventures (FGV) investee company from Swedish-based Abelco Investment Group.

Abelco currently invests in a variety of companies including within the technology and engineering sectors that require capital to develop further.

Its most notable investment is in cryptocurrency portal QuickBit, a company worth around $130 million by market capitalisation with Abelco holding a 6.76% stake.

Under the proposed offer, Fatfish said it intends to dispose of 81% of its shareholding in FGV to Abelco in return for listed shares worth $12.7 million or 50.1% of the enlarged share capital of Abelco. It has been proposed for the transaction to be settled via the issuance of 704 million new shares in Abelco at an issue price of SEK 0.12 per share.

Importantly, Abelco has obtained an exemption from the Swedish Security Council to excuse Fatfish from having to undertake a mandatory bid for all outstanding shares in Abelco.

Furthermore, the de-facto merger offer has already been accepted by Fatfish’s management team but must still be approved by Fatfish shareholders.

Fatfish Global Ventures Abelco structure chart
The current and post transaction structure.

In a statement to the market, Fatfish said the transaction represented an “alternative path for FGV to pursue its listing in Sweden that can fast-track the [company’s] growth”.

FGV is currently headquartered in Stockholm and is actively investing and building internet ventures across Europe and Asia.

The merger is set to create a leading investment company with an international presence ranging from Europe’s Nordic countries to South East Asia and sporting a portfolio of more than 20 investments in various companies within the tech sector.

Fatfish also holds cryptocurrency and…

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