Ax­i­ata’s edotco In­vest­ments buy­ing 12.5% of edotco SG

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: Ax­i­ata Group Bhd’s unit, edotco In­vest­ments (Labuan) Ltd (edotco In­vest­ments) is ac­quir­ing 250,000 or­di­nary shares in the share cap­i­tal of edotco In­vest­ments Sin­gapore Pte Ltd (edotco SG) for US$35 mil­lion (RM146.9 mil­lion) cash.

In a fil­ing with Bursa Malaysia yes­ter­day, it said that edotco In­vest­ments en­tered into a sale and pur­chase agree­ment (SPA) with YSH Fi­nance for the ac­qui­si­tion, which rep­re­sents 12.5% of the op­tion shares.

edotco In­vest­ments is a wholly owned sub­sidiary of edotco Group Sdn Bhd (edotco Group), which in turn is a wholly owned sub­sidiary of Ax­i­ata Group.

Ax­i­ata Group said the cash con­sid­er­a­tion of US$35 mil­lion was ar­rived at after tak­ing into con­sid­er­a­tion, in­ter-alia, the ac­tual 12-month earn­ings be­fore in­ter­est, tax, de­pre­ci­a­tion and amor­ti­sa­tion (ebitda) per­for­mance of edotco Myan­mar Ltd up to Sept 30, 2016, and as­sign­ment and trans­fer of out­stand­ing loans ad­vance by YSH Fi­nance to edotco SG.

After the com­ple­tion of the ac­qui­si­tion and the SPA be­com­ing un­con­di­tional, the put and call op­tion agree­ment will be ter­mi­nated and par­ties will ex­e­cute a re­vised amended and re­stated share­hold­ers agree­ment in­clud­ing a right of first of­fer to edotco In­vest­ments in the event of a pro­posed sale by YSH Fi­nance of the re­main­ing op­tion shares with the above con­sid­er­a­tion as the base price.

The SPA is con­di­tional, in­ter-alia, upon cer­tain con­sents and waivers be­ing ful­filled by Dec 31, 2016, or such other date as agreed by the par­ties. Upon com­ple­tion, edotco Group will hold 87.5% of edotco Myan­mar.

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