Hong Kong developer set to emerge as 28% shareholder of Sapphire Corp

TWO of Sapphire Corp's largest shareholders are selling a 27.96 per cent stake in the company to Hong Kong-listed Hong Kong International Construction Investment Management Group (HKICIM) in a share swap that values Sapphire's shares at 51 Singapore cents apiece.

HKICIM will allot a maximum of 24.9 million and 40.5 million ordinary shares to Best Feast and Ou Rui, respectively, at HK$4.08 each.

The number of consideration shares is subjected to adjustments on the group's audited net profit for the 12-month period ending June 30, 2018, being no less than 64.75 million yuan (S$13.27 million), the company said.

Sale consideration payable to Best Feast and Ou Rui are HK$101.47 million (S$17.62 million) and HK$165.43 million, respectively.

Upon completion of the transaction, Best Feast's interests in the company will be reduced to 56,500,400 shares or 17.33 per cent of the company's existing share capital. Conversely, Ou Rui, which is incorporated in Hong Kong, will cease to be shareholders of Sapphire Corporation.

Following the acquisition, HKICIM will emerge as the substantial shareholder with an estimated 91.2 million shares or 28 per cent of the firm's current issued share capital base of 326.1 million shares as at Oct 19.

Sapphire is an investment management and holding company mainly engaged in the rail and infrastructure engineering, procurement and construction (EPC) business.

Meanwhile, HKICIM is mainly engaged in the business of property development, foundation piling and site investigation in Hong Kong, as well as property investment and management.