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Sinostar extends long stop date of Dongming Qianhai acqusition to Apr 30

SINOSTAR Pec Holdings Limited (Sinostar) on Thursday announced that it will be extending the long stop date of the proposed acquisition of Dongming Qianhai Petrochemical to Apr 30, 2018.

The new supplemental agreement was agreed on due to Dongming Qianhai needing additional time to complete a trial run to achieve the estimated production capacity and to satisfy the relevant designing requirements, the company said in a filing with the Singapore Exchange on Thursday morning.

With the new agreement, if the trial run of Dongming Qianhai is not completed 10 days before the long stop date, Sinostar reserves the right to terminate the agreement immediately.

Dongming Qianhai is obligated to return 50 per cent of the consideration paid by Sinostar and to make payment of an interest with the interest rate of 5 per cent per annum commencing on the date of the new supplemental agreement, Sinostar said.

Sinostar is also entitled to continue with its acquisition of Dongming Qianhai and to commence the change of registration of the target equity interest with the relevant authorities immediately, it added.

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This includes the amendment of the articles of association of Dongming Qianhai and, if required, to re-appoint the legal representative.

Moreover, Sinostar would be able to proceed with the completion audit of the company. Once the completion date of the acquisition is confirmed, the consideration might be adjusted based on the result of the completion audit.

Sinostar shares last traded at S$0.205 on Jan 30.

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