Logiq, Inc., a global provider of award-winning customer acquisition solutions, announced its board of directors has approved a plan to separate its DataLogiq and AppLogiq businesses into two independent publicly traded companies.
Following a strategic review of the company’s growth strategies and structure, the board determined that creating two standalone businesses would best position DataLogiq and AppLogiq to capitalize on their respective growth opportunities in the rapidly evolving global e-commerce and fintech landscape, and would be the best path to creating shareholder value.
The plan calls for the AppLogiq business to be acquired by another existing or newly formed publicly traded company. The AppLogiq segment includes mobile e-commerce solutions, a recently announced mobile fintech platform for microlending, and the company’s beneficial stake in PT Weyland Indonesia Perkasa (WIP). WIP is the operator of the AtozGo™ food delivery service and AtozPay™ mobile e-wallet.
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The separation of the two businesses is expected to result in shareholders of Logiq receiving shares in the company that acquires the AppLogiq business upon consummation of the transaction. However, the final structuring of the transaction remains subject to execution of definitive agreements and may change, as well as to subject to satisfaction of market, regulatory and other customary closing conditions.
“We believe separating AppLogiq and DataLogiq into two ‘pure-play’ publicly-traded companies would unlock additional value for our shareholders,” stated Brent Suen, president of Logiq. “As independent companies, each would have a sharper focus and greater flexibility to pursue M&A opportunities in their respective markets for e-commerce in the U.S. and fintech markets in Southeast Asia.
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“We see this also enabling considerably higher peer valuations compared to where Logiq is at today with AppLogiq and DataLogiq combined. As one analyst recently pointed out, for Logiq, ‘the sum of the parts is greater than the whole.’ Based on comparable public market valuations and private equity funding for companies in the emerging markets fintech sector, it would imply that AppLogiq’s standalone valuation could justify $100 million.”
There are several companies that Logiq has partnered with in emerging markets that are currently reviewing a potential acquisition of, or merger with, AppLogiq. Such a transaction could form a substantial platform for digital services to be offered in high-growth emerging markets.
Logiq recently announced engaging a leading U.S. investment bank, The Benchmark Company, to assist Logiq with this transaction and potentially others. Logiq plans to complete the separation before the end of the year, subject to customary conditions and approvals.