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Sincap acquires more equity in Orion Energy for S$12m

SINCAP Group is set to acquire another 48.97 per cent interest in Orion Energy Resources Pte Ltd for S$12 million, lifting its equity stake in the latter up to 99.97 per cent.

A conditional sale and purchase agreement was signed between Sincap and privately owned Magnigrow Capital on Tuesday for the sale and purchase of the 48.97 per cent equity stake in Orion Energy.

The directors of Magnigrow Capital are its sole shareholder, Ip Miu Hing and Chen Xin Yi. Mr Ip also holds 17.5 million shares or a 1.03 per cent equity interest in Sincap.

Sincap intends to issue a three-year non-listed, non-tradable convertible bond with an aggregate value of S$12 million to Magnigrow Capital. The bond, with a maturity period of three years, will carry an interest of 5 per cent per annum which will be payable annually.

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The firm is entitled at its discretion to redeem the bond in whole or in part any time before maturity either using cash or issuing shares to Magnigrow Capital. 

Each share to be issued to Magnigrow Capital for redeeming the bond will be priced at 1.2 Singapore cents, about 9.09 per cent of the weighted average price of 1.1 Singapore cent per ordinary share in Sincap’s capital for trades done on the Singapore Exchange on Nov 27, 2018.

Sincap said that its board is of the view that Orion Energy is a financially strong and profitable entity, and will continue to provide consistent returns to its parent group.

Orion Energy’s net asset value stood at in excess of US$18.69 million as at Dec 31, 2017.  Its net attributable profit before tax for FY2017 was US$5.03 million.