Huan Hsin to acquire mining company stake for S$1.06b in reverse takeover

Singapore

CHINESE electronics contract manufacturer Huan Hsin Holdings has entered into a conditional acquisition agreement with Jade Merit Developments to purchase a 99.99 per cent equity interest in Huangshan Zhongtian Weiliang Mining Co (Huangshan Mining Co) for S$1.06 billion.

Of this amount, S$60 million will be paid in cash. The remainder will be paid by an allotment of consideration shares at an issue price of S$0.033 per share, following which the vendor, Jade Merit, will own 87 per cent of the firm's enlarged share capital. As Jade Merit will own more than 30 per cent of Huan Hsin's voting rights, it will be required to make a general offer for the remaining shares it does not already own, unless it is granted a waiver by the Securities Industry Council.