Sky One enters coal mining business

The Group’s existing businesses have experienced declining profitability in recent years.

Sky One Holdings Limited announced that it has entered into a conditional sale and purchase agreement to acquire the entire issued and paid-up share capital of Energy Prima Pte Ltd for a purchase consideration of S$400 million.

The purchase consideration is to be fully satisfied by the allotment and issuance of 1.6 billion new ordinary shares in the capital of Sky One to the vendors of Energy Prima Pte Ltd at S$0.25 each.

The proposed acquisition will result in a reverse takeover of Sky One and is therefore subject to the company’s shareholders’ approval at an extraordinary general meeting to be convened.

Energy Prima Pte Ltd is a Singapore incorporated investment holding company which owns 80% of the issued share capital of PT Pilar Mas Utama Perkasa, which in turn owns 99.8% of PT Rinjani Kartanegara. Both PMUP and PT Rinjani are Indonesia incorporated companies engaged in the business of coal mining.

The announcement said the Group’s existing businesses have experienced declining profitability in recent years and it expects continued weak demand from its key markets in Hong Kong and the PRC, amidst present global economic uncertainties.

As such, the proposed acquisition presents an investment opportunity which allows the company to enter into the fast growing coal mining industry and position itself within a highly developed and active market for coal resources.