New Delhi: Kishore Biyani owned Future Enterprises Thursday said it has acquired over 7.11 crore partially paid shares in fintech startup Livquik Technology for a cash consideration of Rs 20 crore. “The company has today subscribed to/ acquired 7,11,74,377 partly paid shares which comprise of 54.22 per cent of the nominal share capital of Livquik Technology (India) Ltd (Livquik) on a fully diluted basis (acquired shares),” Future Enterprises said in a regulatory filing.
Once calls on the acquired shares are made and payment of such calls are completed by the company, Livquik will become a subsidiary of the company, it added.
Future Enterprises has subscribed to the equity shares in Livquik at Rs 2.81 apiece and has paid an amount of Rs 5 crore initially, it said, adding that the balance amount will be paid in tranches as per calls made by the acquired company.
Calculated at the subscription price, the company is expected to pay nearly Rs 20 crore to Livquik for this acquisition.
The deal is expected to be closed within an indicative timeline of 24 months.
“The activities carried out by Livquik is expected to add value to the business of the company,” Future Enterprises said.
Livquik is engaged in business of issuance of digital prepaid payment instrument, provision of payment gateway services and development of specialised system software and application software.
With a networth of Rs 1.67 crore at end-March 2018, Livquik had turnover of Rs 1.69 crore for 2017-18.
Shares of Future Enterprises closed 0.49 per cent lower at Rs 40.75 apiece on BSE.
The development was reported by ETRetail.com