Asti associate EoCell in talks for potential SPAC combination

LITHIUM-ION battery manufacturer EoCell, an associate of Asti Holdings : 575 0%, has entered into a non-binding letter of intent with an unnamed publicly-traded special-purpose acquisition corporation (SPAC) for a potential combination.

If a definitive agreement is reached after negotiations, and the business combination is completed, it is expected that the SPAC will acquire EoCell by reverse triangular merger, or by a similar structure mutually agreed by the parties; the shareholders of EoCell will become shareholders of the SPAC, said Asti, a watch-listed semiconductor manufacturing services company, in an exchange filing on Wednesday (Jun 8).

“Shareholders and potential investors should note that there is no assurance that a definitive agreement will be entered into, or that the transaction will be completed if a definitive agreement is entered into,” the company said.

Asti, which has an indirect interest in EoCell, will accordingly have an indirect interest in the SPAC, if the transaction is completed.

None of Asti’s directors, substantial shareholders and/or any of their respective associates, other than EoCell, has any direct or indirect interest, other than through their shareholdings in the company, in the transaction.

Asti said it will announce further details regarding the transaction, including the identity of the SPAC, as permitted by the parties. It will also make a further announcement if a definitive agreement is not entered into.

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Asti said on Monday that it will be delisted from the Singapore bourse for failing to meet the requirements to exit the watch list. It has on the watch list since Jun 6, 2019.

Asti shares closed 7.1 per cent or S$0.001 lower on Wednesday at S$0.013.