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Advanced Holdings plans to acquire Agricore Global
ADVANCED Holdings Limited has entered into a non-binding agreement to acquire the entire equity interest in Agricore Global, together with its subsidiaries and associated companies.
The proposed acquisition, if undertaken and completed, is expected to result in a reverse takeover of the company. The company will seek a transfer of its listing from the mainboard to the Catalist.
The purchase consideration will be between S$180 million and S$240 million, subject to negotiations.
It will be paid partly in cash and partly by the issue and allotment of new ordinary shares at an indicative issue price of S$0.50 per share, in a proportion to be mutually agreed upon.
Subject to completion of a group restructuring exercise, Agricore Global and its subsidiaries and associated companies will have an interest in the concessions to 23 parcels of agricultural permits in Indonesia to be cultivated into crude palm oil plantations, as well as two forestry concessions for timber management. Their assets are located on Sulawesi Island, Indonesia, and have a land permit area of about 232,102 hectares.
Advanced Holdings said it continues to face "challenging business and operating conditions" and it believes that the proposed acquisition will provide an opportunity for the company to venture into a new business area that has potential for growth. It will also diversify from the existing industries that it serves and will therefore limit its exposure to risks relating to the prolonged uncertainty of external economic factors.