Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Dotcom’s Mega seeks $210 mln backdoor listing on NZX

Dotcom’s Mega seeks $210 mln backdoor listing on NZX via TRS Investments

By Paul McBeth

March 25 (BusinessDesk) - Mega Ltd, Kim Dotcom’s data storage and encryption company, is seeking a backdoor listing on the NZX valuing the firm at $210 million.

Shell company TRS Investments, which has previously been looking at a back-door deal to list Cornerstone Mineral Corp, will buy 100 percent of Mega for $210 million, which will be satisfied by the issue of 700 million new shares in TRS to the existing Mega shareholders at 30 cents apiece, the company said in a statement.

It will then undertake a 148 for 1 consolidation of its existing share capital, leaving Mega shareholders owning 99 percent of TRS and adopt the Mega name. TRS shares were unchanged at 0.1 cents, valuing the shell company at $1.1 million.

Dotcom staged a full-scale global media launch for Mega in 2012 to replace Megaupload, his previous venture which was shut down in a US-led operation that alleged the file-sharing firm and its owners had committed mass copyright infringement and money laundering of more than US$500 million.

This week Dotcom and his co-accused, Finn Batato, Mathias Ortmann and Bram van der Kolk lost a bid in the Supreme Court to access US government evidence against them ahead of the extradition hearing.

Mega’s existing shareholders include Dotcom’s wife Mona, who owns 26 percent of Mega via MD Corporate Trustee Ltd, followed by Wolf Ortmann with 18 percent, and Michael Sorensen via VIG Ltd with 11 percent, according to Companies Office filings. John Schollum, via Hobson Street Holdings emerged as a Mega shareholder this week with a 2.3 percent stake.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

Dotcom stepped back from a hands-on role at Mega last year, resigning as a director in August to focus on his extradition hearing, music streaming website and political aspirations via the Internet Party. He doesn’t hold any directorships in New Zealand, and his only direct shareholding is in RSV Holdings.

The deal needs approval from TRS shareholders, and is conditional on regulatory approvals.

TRS’s biggest shareholders are Paul and Lynette Choiselat, who own 73 percent of the company.

TRS and Cornerstone Mineral Corp ended their talks, with the mining company instead eyeing the new NZX market being touted for small and medium sized companies.

(BusinessDesk)

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.