A jagged acqquisition of Jagged Peak?
On 15 Feb 2019, Singpost announced acquisition of remainder of 21.1% shares in Jagged Peak as the owners have decided to activate their put option. The consideration to be paid for the shares are US $10.59 million + US $1.75 million (only if a customer debt is recovered).
Amount Paid in USD
Net Tangible Asset Value
Price paid per % of Jagged Peak in USD
First Acquisition by Singpost (9 October 15)
2.9 million (26 June 2015)
-0.7 million (26 June 2015)
Second Acquisition by Singpost (15 Feb 19)
-0.6 million (31 December 2018)
-3.8 million ( 31 December 2018)
0.3664 to 0.4270 million
1. Jagged Peak has become a company with negative book value over the time span (Increased liabilities more than Equity)
2. The acquisition of 28.9% of shares in Jagged Peak is more costly than the initial acquisition of 71.1%.
Food for thought
In the Annual Report
However, in the acquisition, the maximum amount to be paid is only USD 12.34 million or SGD 16.74 million (
While it would be difficult to run the numbers as the exact method of deriving is not told, it can be said that the amount paid is close to half of the maximum. I won’t think that the performance is ideal. If it was the put options might not have been exercised as well.