Friday, October 26, 2012

Koh Brothers in deal for substantial stake in Metax


OCTOBER 26, 2012
Koh Brothers in deal for substantial stake in Metax
BY TEO SI JIA

Property developer and construction company Koh Brothers Group has struck a deal with Metax Engineering for a proposed substantial stake in the environmental engineering company. Under a proposed subscription, Koh Brothers will subscribe for 155 million new shares in Metax for $8.215 million, or 5.3 cents a share, giving it a stake of 41 per cent in Metax's enlarged share capital, or 34 per cent on a diluted basis if existing warrants and specified proposed referral warrants in Metax are exercised by their owners.

The subscription will come with 165 million free three-year warrants for Koh Brothers, each convertible to a Metax share at an exercise price of 5.3 cents.

Koh Brothers will invest another $8.745 million if it decides on full conversion of the warrants. It will then own 59 per cent of Metax's enlarged capital, or 51 per cent on a diluted basis.
Koh Brothers said funding will come from internal resources. Metax shares were last traded at nine cents apiece.

The proposed deal is subject to the approval of Singapore Exchange, the Securities Industry Council (for waiver from the obligation to make a mandatory general offer) and Metax shareholders.

Following the completion of the transaction, all existing directors of Metax, with the exception of Tan Hwa Peng, will step down from their directorships and employment to make way for Koh Brothers' nominees. It has already named Francis Koh Keng Siang, Koh Brothers' group managing director and chief executive officer, the next chief executive officer of Metax.

Koh Brothers sees the growing demand for clean water in Asia Pacific as reinforcing Metax's potential. The acquisition also presents collaboration opportunities.


Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
Email: marshe_inc@yahoo.com.sg
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)

| www.marshe.sg | www.marsheproperties.com.sg | www.hudcsg.blogspot.com |
| www.hausatserangoon.sg | www.8riversuites.com | www.newagents.sg |

No comments:

Post a Comment