WE Holdings to buy sand supplier for S$25m

Singapore

WE Holdings has yet another acquisition deal on the table and another potentially dilutive plan to fund it as well.

The target this time is marine sand supplier Hua Kai, which will cost WE S$25 million if certain balance sheet and profit targets are met.

To fund part of the purchase, WE plans to issue S$25 million of three-year convertible bonds, which will pay an 8 per cent coupon and confer the option to convert into shares at a 5 per cent discount to market levels.

WE, a Catalist-listed electronics distributor that over the past year has tried to move into the commodities space, announced the non-binding memorandum of understanding for the Hua K…