NEW YORK - Metal Sky Star Acquisition Corporation (NASDAQ:MSSA), a special purpose acquisition company, has announced its intention to acquire Fedilco Group Limited, a key shareholder in Armenia's telecom sector. The letter of intent signifies the company's strategy to expand its holdings by purchasing Fedilco's 80% equity interest in Viva Armenia, a leading telecom company in the country.
Viva Armenia boasts a substantial market presence with over 2.3 million subscribers and a 61% share of active subscribers in the local telecom market. It also contributes significantly to the Armenian economy, being among the top 10 taxpayers. The telecom provider's workforce of 1,132 employees supports a broad network with roaming partnerships spanning 529 operators in 192 countries.
Wenxi He, CEO of Metal Sky Star, expressed optimism about the acquisition, emphasizing Viva's reputation and its alignment with the company's goal to leverage Armenia's economic growth for shareholder value. Viva has been a pioneer in adopting corporate social responsibility based on ISO 26000 standards, which highlights its commitment to sustainable business practices.
The completion of the acquisition is subject to regulatory approvals from the Republic of Armenia's state authorities. Metal Sky Star's pursuit of this transaction reflects its broader business strategy as a blank check company, which involves mergers and acquisitions aimed at driving growth and profitability.
The press release also contains forward-looking statements regarding the potential acquisition, cautioning that such statements involve risks and uncertainties. Metal Sky Star has clarified that it is under no obligation to update these statements post-release date unless mandated by law.
This report is based on a press release statement from Metal Sky Star Acquisition Corporation.
In other recent news, Metal Sky Star Acquisition Corporation has announced plans to acquire a significant stake in Viva Armenia, a leading telecommunications firm. This preliminary agreement is a first step toward a full acquisition, pending necessary approvals from the Armenian authorities. Meanwhile, Metal Sky Star is also facing potential delisting from the Nasdaq Global Market due to non-compliance with listing rules. The company has failed to file its quarterly report on time, not met the minimum requirement of 400 public holders, and has not completed a business combination within the stipulated 36-month period post its initial public offering. As a result, the company's securities could face suspension starting August 16, 2024, unless it successfully appeals before the Nasdaq Hearings Panel. The company is scheduled to attend a hearing with the Nasdaq Hearings Panel on September 19, 2024, to present its plans to resolve these deficiencies. These are some of the recent developments surrounding Metal Sky Star Acquisition Corporation. The company's future plans and operational strategies are outlined as forward-looking statements, subject to various conditions and risks.
InvestingPro Insights
Metal Sky Star Acquisition Corporation's (NASDAQ:MSSA) move to acquire Fedilco Group Limited aligns with its strategy as a special purpose acquisition company. Recent data from InvestingPro sheds light on MSSA's financial position and market performance, providing context for this potential acquisition.
As of the latest data, MSSA has a market capitalization of $74.33 million USD, indicating its relatively small size in the market. This acquisition could potentially be a significant step for the company's growth strategy. The stock is currently trading near its 52-week high, with a price that is 99.23% of its highest point over the past year. This suggests investor confidence in the company's recent performance and future prospects.
InvestingPro Tips highlight that MSSA is trading at a high earnings multiple, with a P/E ratio of 47.5. This valuation might reflect market expectations for future growth, possibly tied to acquisitions like the one with Fedilco Group Limited. Additionally, the stock generally trades with low price volatility, which could be attractive for investors seeking stability in a SPAC investment.
It's worth noting that MSSA has been profitable over the last twelve months, despite not paying dividends to shareholders. This profitability could provide a financial foundation for the company's acquisition strategy.
For readers interested in a deeper analysis, InvestingPro offers 8 additional tips for MSSA, providing a more comprehensive view of the company's financial health and market position.
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