Employees of Singapore-based Hmlet have been told that their stock options now bear no value after the rental apartment service’s merger with German co-living rental platform Habyt. The announcement was made via an email sent out by Hmlet CEO Giselle Makarachvili.
Photo credit: Hmlet
Tech in Asia has reviewed Makarachvili’s email, which stated that under the terms of the deal, the ordinary shares in Hmlet’s capital have “zero value.” Beyond this, the company listed no other explanation for terminating the ESOP.
A stipulation in the merger contract stated that in case Hmlet is acquired, then specific investors will be prioritized and receive the transaction earnings first, noted a report by The Business Times.
The merger with Habyt took place in April. Though the deal amount was undisclosed, it is estimated to be worth around US$60 million. In 2019, Hmlet was worth US$154.4 million, according to VentureCap Insights.
Hmlet was left struggling after the Covid-19 pandemic struck and afftected its business.
Editing by Samreen Ahmad and Eileen C. Ang
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