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Vibrant subscribes for 31% stake in Chongqing Pucheng Logistics
MAINBOARD-LISTED Vibrant Group and its subsidiaries, together with Figtree Developments Ptd Ltd (FDPL), entered into a joint venture agreement with the existing shareholders of Chongqing Pucheng Logistics to subscribe for new shares in Pucheng.
Vibrant and FDPL, a subsidiary of Figtree Holdings Limited, will each subscribe for a 31 per cent and 20 per cent stake in the enlarged share capital of Pucheng for a cash consideration of 31 million yuan (S$6.28 million) and 20 million yuan, respectively.
Upon completion of the share subscription exercise and by way of capitalisation of the existing shareholders' loans of 29 million yuan, Pucheng's share capital will be increased from 20 million yuan to 100 million yuan, according to a press release issued on Thursday.
The unaudited net asset value of Pucheng as at Dec 31, 2016, after completion of shares subscription and the capitalisation of shareholders' loans, will be about 91.7 million yuan. The purchase consideration represents approximately a 9.05 per cent premium over the share of the net asset value of Pucheng.
Vibrant said that the subscription of shares will be funded by a "combination of internal resources and bank borrowings". The investment in Pucheng is not expected to have a material impact on the earnings per share and net asset value per share of the company for the current financial year ending April 30, 2017.