SINGAPORE (May 08): SGX-listed companies Rich Capital Holdings Limited has announced that the company will acquire Rich-Link Construction (RLC) and Rich-Link Builders (RLB) for S$33.7 mil instead of S$43.98 mil.
The revised price for RLC and RLB are lower than the initially agreed amount by S$10.28 mil or 23.4%, which are effectively owned by its chairman Wang Zhen Wen.
Both parties had on 7 May 2019 entered into a supplemental agreement, according to the company’s announcement made to SGX on Wednesday.
The revised price comes after the revised valuation report issued by an independent valuer, BDO Advisory on April 29 whilst the audited financial statements of both companies for fiscal year ended Dec 31, 2018 were finalised, as well as factored in outstanding orders secured, and prevailing business risks and prospects within the construction industry.
Following the revised consideration for the sale shares, with the issue price remaining at S$0.006 as per the SPA dated 8 January 2019. Rich Capital will pay for the companies by issuing new shares to Mr Wang and Rich-Link Group Pte. Ltd. (RLG) (collectively, the “Sellers”) in two tranches at an issue price of S$0.006 per share.
In total, there is an aggregate of up to 5,616,666,667 new Shares may be issued by the Company to the Sellers, with the first tranche consists of about 4.5 billion shares worth approximately S$26.96 mil, while the second tranche consists of about 1.1 bilion shares worth about S$6.74 mil, according to the statement.
After the share issue to Mr Wang and RLG, both parties will collectively own up to 60.08 per cent of the enlarged share capital for the company.