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Chip Eng Seng grants US$4.95m convertible loan to Cybint Group
CHIP Eng Seng has agreed to extend a US$4.95 million convertible loan to Israel's Cybint Group, it said on Monday.
Cybint Group delivers innovative education and training solutions in cybersecurity to organisations and educational institutions, with the aim of training users to develop skills against emerging cybersecurity threats, it said. Since 2018, Cybint Group has also partnered private industry, academia and government entities to launch physical learning centres worldwide.
Chip Eng Seng will provide the loan to Cybint International, a newly-incorporated company in Singapore, on an interest-free basis.
Prior to the disbursement, Cybint International is required to acquire all the issued and paid-up shares of Cybint Solutions, the main operating business, from founder Roy Moshe Zur, such that Cybint Group will be a subsidiary of Cybint International.
The convertible loan is for a term of 12 months from the disbursement date.
Upon full conversion of the convertible loan, Chip Eng Seng unit CES Edutech will hold an interest of 33.33 per cent in Cybint International and its subsidiaries, assuming no additional shares in Cybint International are issued.
Should the conversion not take place by that final conversion date, Cybint International will repay the loan in full to Chip Eng Seng within 36 months from the final conversion date, at an interest rate of 8 per cent per annum.
Chip Eng Seng said in a statement: "The company believes that the proposed transaction contributes to its strategic direction for its education business segment to invest into educational technology companies that will provide opportunities to achieve growth in the education sector.
"The company believes that the need for cybersecurity literacy and specialised cybersecurity professionals would continue to grow with the ongoing digitisation of the global economy, and investing in the education and training solutions and services in cybersecurity developed by the Cybint Group will allow the company to enter the growing area of cybersecurity within the education business segment."
Chip Eng Seng shares rose half a Singapore cent or 0.82 per cent to S$0.615 on Monday.