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Bowen Fintech’s potential Japanese crowdfunding purchase

Bowen Fintech (LON: BWN) has secured an acquisition target just over one year after joining the standard list. The proposal is to acquire 93.49% of the share capital of MINNADEOOYASAN-HANBAI Co (MOH) and the enlarged business is expected to be valued at £42.7m.

The share price was suspended at 12p until a prospectus is issued. In October 2022, £2m was raised at 4p/share. There have been no shares traded since 29 November and prior to that it was 3 October. At the end of April 2023, there was £1.7m in the bank.

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Japan-based MOH is a crowdfunding platform focused on property. It has been operating since 2007 and raised Y62bn (£378m) during the year to March 2023. The plan is to become involved in cold-chain logistics and expand into other Asian markets. Being listed could help this to happen.

In the year to March 2023, revenues were £34.3m and EBITDA was £3.2m. In the latest six months, revenues were £27.8m and EBITDA £11.6m. NAV is £26.4m.

Bowen Financial is issuing shares at 15p each and that will value MOH at £34.5m. This is a one-quarter premium to the suspension price, which is the highest the share price has been.

Due diligence is being undertaken and legally binding documentation has not been agreed. There will also be third party consents required for the deal to go ahead.  

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