Mega Ltd, Kim Dotcom’s data storage and encryption company, is seeking a backdoor listing on the NZX valuing the firm at $NZ210 million ($A198.
Shell company TRS Investments will buy 100 per cent of Mega for $NZ210 million, which will be satisfied by the issue of 700 million new shares in TRS to the existing Mega shareholders at 30 NZ cents apiece, TRS said in a statement on Tuesday.
It will then undertake a 148-for-one consolidation of its existing share capital, leaving Mega shareholders owning 99 per cent of TRS and adopt the Mega name.
TRS shares were unchanged at 0.1 NZ cents, valuing the shell company at $NZ1.1m.
Mr Dotcom staged a full-scale global media launch for Mega in 2013 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 $US500 million ($A548.91 million).
Mega’s existing shareholders include Mr Dotcom’s wife Mona, who owns 26 per cent of Mega via MD Corporate Trustee Ltd, followed by Wolf Ortmann with 18 per cent, and Michael Sorensen via VIG Ltd with 11 per cent, according to Companies Office filings.
John Schollum, via Hobson Street Holdings, emerged as a Mega shareholder this week with a 2.3 per cent stake.
Mr Dotcom stepped back from a hands-on role at Mega last year, resigning as a director in August to focus on his extradition proceedings, music streaming website and political aspirations via the Internet Party.
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 per cent of the company.