MFEC sells its Digital Delivery business to BBIK for 691 million baht : InfoQuest

MFEC Public Company Limited (MFEC) revealed that the Board of Directors has decided to restructure the company. The digital distribution business will be sold to Blue Bik Public Company Limited (BBIK) for a total value of 691 million baht. The transaction is expected to be completed by March 2023.

The Company will establish 2 new subsidiaries for the purpose of restructuring the Group’s internal business, namely Eastwind Holdings Company Limited (EWH) and Vulcan Digital Delivery Company Limited (VDD) to Adapt the internal business structure of the group of companies. The Company will sell assets used in the Digital Delivery business unit, such as computers and related equipment, to VDD, an indirect subsidiary of

The Company transferred approximately 300 software developer and other relevant employees in the Digital Delivery business unit to VDD.

In addition, to provide services to the company’s customers with continuity during the connection. The Company will employ VDD as a sub-service provider in the contracts entered into by the Digital Delivery business unit (on behalf of the Company) with customers who are still in the process of providing software development services or contracts on any of the projects The Company The warranty covers services that may be performed in the future under a Maintenance Agreement.

EWH, a subsidiary of the Company Transfer of the whole business under the process of whole business transfer (“EBT”) to BBIK As a result of such whole business transfer As a result, all assets, liabilities, rights, existing duties and responsibilities of EWH and which will in the future on the business transfer date, namely ordinary shares of VDD, be transferred to BBIK, which will result in EWH and VDD. cease to be a Group Subsidiary company

EWH will receive cash as consideration for the entire business transfer to BBIK, totaling 691,000,000 THB, where EWH will receive a one-time payment on the date of completion of the entire business transfer. The transaction is expected to be completed in March 2023.

By InfoQuest News Agency (01 Dec ’22)

Tags: BBIK , Digital Submission , MFEC , Blue Bik , Thai Stocks , MFEC

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