Cedar Strategic to acquire Trechance for $936.2 million

It plans to increase issue price per share to S$0.20.

According to a release, Cedar Strategic has entered into a conditional sale and purchase agreement with Talented Creation International Limited to acquire Trechance  for a consideration of S$936.2 million, Trechance being the legal and beneficial owner of Hua Cheng. 

The Consideration will be satisfied by the issuance of 46,810,600,000 new shares to the Vendor at an issue price of S$0.02 per Consideration Share, on a pre-share consolidation basis.

The final Consideration shall be fixed at 70% of the realisable net asset value of Hua Cheng as at June 30, 2013, as determined by Jones Lang LaSalle
Corporate Appraisal and Advisory Limited, an independent market valuer appointed at Cedar Strategic’s discretion. The Issue Price and number of Consideration Shares will be adjusted accordingly.

The indicative RNAV of Hua Cheng was approximately RMB6.7 billion (approximately S$1.3 billion)4as at November 30, 2012. 

In conjunction with the Proposed Acquisition, the Group proposes to undertake a share consolidation – ratio and time to be determined by the Board – to increase the Issue Price for each Consideration Share to S$0.20, in compliance with Rule 1015(3)(c) of the Listing Manual.

The Group intends to seek Shareholders’ approval for the Proposed Acquisition, at an extraordinary general meeting to be convened.