JES International Holdings Limited has agreed to acquire a Malaysian company known as Maya Asia Resources Sdn Bhd for S$16.33 million in a move that will usher the group into a new manufacturing and trading business.
Maya Asia is an investment holding company whose subsidiaries are in the trading and manufacturing of plastic products, foodstuffs, household insecticides, seasoning, beverages and infant products.
JES International said on Tuesday night that it has entered into a conditional sale and purchase agreement with Lo Chia Chen, Pang Jet Seng, Pang Lay Seng, Teo Lay Seng and Khoo Hin Keat to acquire Maya Asia.
The purchase price will be paid partly in cash and partly in shares of JES International. The group said it will be looking to internally generated funds, as well as to raise more monies from fund raising exercises.
Giving updates on Wednesday on its proposed restructuring of Chinese subsidiaries, the former shipbuilding company said it was informed that on Oct 25 the Jingjiang Court in China has ruled in favour of its restructuring managers' application to treat the Chinese subsidiaries as a single merged entity for the restructuring since they have largely the same group of creditors.
Separately, JES has filed a legal suit in Singapore's High Court last month against father-and-son pair Yang Shushan and Yang Nan over the transfer of 60 million JES shares to an account of a sub-depository agent.
This transfer was said to be a breach against the moratorium under a deal for JES to acquire 51 per cent stake in Scibois Co Limited from the duo. The acquisition was terminated by JES in March last year.
But given that the father and son are residing in China, the processing time ranges from several weeks to several months, the group said.