VC-backed Asia streaming business agrees SPAC merger

KPCB led the company’s first investment round in 2014. Two years later, the firm provided additional funding alongside Wicklow Capital, Ventech China, MSA Capital, and Fritz Demopoulos, co-founder of China travel booking portal Qunar, according to AVCJ Research.

The SPAC is Magnum Opus Acquisition, which is sponsored by an affiliate of L2 Capital, a Greater China-focused PE firm that focuses on consumer and technology. The founders are Jonathan Lin, formerly of Point72 and Och-Ziff Capital Management, Frank Han, who previously worked for The Blackstone Group, and Kevin Lee, formerly of Hong Kong family office Gallant Investment Partners.

Magnum Opus raised USD 200m in early 2021. Its initial merger target was Hong Kong-based Integrated Whale Media (IWM), parent of business information brand Forbes Global Media Holdings. The deal was terminated in June.

Existing ASIG shareholders will roll over their equity interests into the merged entity, taking an 84% stake. Additional interests will be held by investors in the SPAC and the SPAC sponsor. The latter typically receives a 20% interest in the SPAC post-listing, and this is diluted into a small minority stake in the merged entity.

The transaction is expected to generate gross proceeds of USD 200m – from the earlier Magnum Opus IPO – and there are plans for an additional capital raise of USD 150m. It still needs to be approved by a majority of SPAC investors. On completion, they can exercise their warrants and purchase shares or redeem some or all their shares for cash.

ASIG had more than 400m registered users in 150 countries and regions across Asia, the Middle East and North Africa, and North and South America as of December 2021. The company is headquartered in Singapore and operates out of 18 offices globally with over 1,000 employees.

Uplive, ASIG’s flagship product, was launched in 2016 and claims 300m registered users. It functions as a live social platform, allowing users to participate in multi-party video and voice chatrooms, complete with real-time translation and customisable 3D avatars.

Other products include voice-centric social app Haya, dating platforms Lamour and CuteU, cross-border and direct-to-customer online retail business Hekka, payment services Uppay and CCNet, and gaming platform Minerva Games.

ASIG’s revenue grew 100% year-on-year in the 2021 financial year, making it the fastest-growing consumer internet company by revenue and scale to announce a SPAC merger in 2022, according to a statement. No specific details were given on revenue or profitability.

"Emerging markets from Africa to Asia to South America are currently undergoing a transformation powered by the spread of advanced mobile technology, fast-growing economies, young populations, and rapidly improving infrastructure,” said Andy Tian, CEO of ASIG.

“ASIG has built a unique, well-diversified global business in the core verticals of social, games, e-commerce, and payments, on an integrated platform with strong synergies that will amplify growth in future years.”

Separately, a SPAC sponsored by Liang Meng, founding managing partner of China’s Ascendent Capital Partners, began trading following the completion of its USD 1.8bn merger with Tim Hortons China. The stock closed at USD 5.98 on September 30 versus an offering price of USD 10.00.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Technology
• IPO
• Consumer
• Asia
• SPAC
• KPCB China Management
• MSA Capital
• TMT