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EpiCentre's S$400m proposed reverse takeover terminated

EPICENTRE Holdings' S$400 million proposed reverse takeover of two real estate companies, which was supposed to reposition the firm as a regional property player after it exited the local Apple reseller business, is now off.

EpiCentre said in a Singapore Exchange announcement on Monday that it, MacroCap Asia Capital, owner of Thai property developer Asia ThaiYuan, and Chinese hotel manager Gloria International had failed to agree on the terms of agreements for the proposed acquisition and do not expect to ink any deal within six months of their memorandum of understanding signed June 27.

The company had proposed to pay S$375 million for MacroCap and S$25 million for Gloria by issuing 1.74 billion new shares at S$0.23 apiece.

EpiCentre said: "The discontinuance of the proposed acquisition will not have any material financial impact on the group.
The Company remains committed to exploring new business areas with potential for growth, in order to provide regular and growing revenue streams for the Group and to enhance the long-term value for the company and shareholders."

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The company completed in November its sale of its Apple reseller business here to a rival for just S$516,275, which would also mean a proceeds deficit of S$950,000. It continues with its Apple reseller business in Malaysia and beauty and hair removal business Japan IPL Holdings, it said in November.

In its Monday statement, the company said that it will still continue to fulfil a proposed placement to issue up to around 79.7 million new shares at no less than S$0.12 a share, for net proceeds of some S$9.3 million.

Its previous statement had said that between 60 per cent and 70 per cent of those net proceeds were supposed to be used for repaying existing liabilities and 30 to 40 per cent for expenses for general working capital purposes and future acquisitions and related expenses.

This is meant to replace an earlier rights issue for existing shares that would have brought in S$15.79 million.