Oxley to acquire Cambodian asset for US$11.2m

It has a total area of 6,625 sq m.

In a release, Oxley Holdings Limited announced that the Group’s 49%-owned associated company, Oxley-Worldbridge (Cambodia) Co., Ltd., had entered into an amendment agreement dated 1 July 2013 in respect of a share sale and purchase agreement dated 22 May 2013 to acquire all the shares in the capital of CityStar Phnom Penh Cottages Ltd, from three unrelated third parties, for an aggregate purchase consideration of US$11,262,500.

CPPC is a company incorporated under the laws of the Kingdom of Cambodia with an issued capital of 4,000,000 KHR (approximately SGD1,246) comprising 1,000 shares.

CPPC is the owner of two pieces of land on Street #84, Phum #13, Sangkat Srah Chork, Khan Daun Penh, Phnom Penh Capital, Kingdom of Cambodia. CPPC is to be acquired on the basis that its total cash assets and all credits and debits shall be nil at the time of the transfer of the Purchase Shares.

The Land has a freehold tenure and total area of approximately 6,625 square metres. It is zoned for commercial and residential development.

Oxley Worldbridge intends to redevelop the Land together with the adjoining land, the acquisition of which was announced on 14 June 2013, subject to obtaining all the necessary approvals from the relevant authorities.

The purchase consideration of US$11,262,500 was arrived at on a willing buyer-willing seller basis after taking into account the value of the Land and the Group’s assessment of the Land’s development potential. Based on a valuation of the Land commissioned by Oxley-Worldbridge, the Land had a market value of US$12,256,250 as at 12 June 2013.

A sum of US$2,252,500 had been paid, giving Oxley-Worldbridge the exclusive right to purchase the Purchase Shares for a period of three months from the date of the share sale and purchase agreement.