RATIONALE FOR THE PROPOSED ACQUISITION. To enhance shareholder value, the Company has been seeking an appropriate business to be injected into the Group. The Company is of the view that the Proposed Acquisition will place the Company in a position to expand into new business areas and grow revenues, both of which will help enhance shareholder value.
RATIONALE FOR THE PROPOSED ACQUISITION. The Group is currently undergoing a restructuring exercise, and pursuant thereto has entered into a scheme of arrangement with its creditors (“SOA”). The last extension of time to submit resumption of trading proposals was 15 June 2021 and the SOA expired on 30 June 2021. Please refer to the Company’s previous update announcements on the SOA and the extension of time to submit resumption of trading proposals. The Company will seek all necessary extensions of time from the SGX-ST as well as the creditors under the SOA. To rebuild shareholder value, the Company has been seeking an appropriate business to be injected into the Group. The Company is of the view that the Proposed Acquisition will place the Company in a position to expand into new business areas and grow revenues, both of which will help rebuild shareholder value. In addition, the proposed acquisition will facilitate the Group’s attempts to build a profitable recurrent business and operate as a going concern in the long term. The Directors are of the opinion that, as of the date of this announcement, after taking into consideration the Proposed Transactions and its present banking facilities, the working capital available to the Group is sufficient to meet its present requirements and that the Company will be able to operate on a going concern and therefore, have a viable proposal for the resumption of trading of its Shares. With the expected improvement in financial position of the Group upon completion of the Proposed Transactions and the diversification of the new business which is expected to be profitable in the long run, this would provide values to shareholders. The Company plans to develop a new kiosk model which is much more efficient and scalable to cater for the current market trend which is by delivery. The company will continue to explore this as a driver to enhance the existing restaurant business.
RATIONALE FOR THE PROPOSED ACQUISITION. This Proposed Acquisition is in line with the Group's plans to pursue its growth strategy and expand its international footprint in its partnership with international studios globally. Upon completion of the Proposed Acquisition, and through JPE's existing relationship with Universal Studios, the Group will hold three (3) major international intellectual property rights licences, in addition to the existing licences it holds, namely, "AVENGERS S.T.A.T.I.O.N." and "TRANSFORMERS" which are from Marvel Characters B.V. and Hasbro International Inc., respectively.
RATIONALE FOR THE PROPOSED ACQUISITION. 7.1 Potential source of cashflow The Island PSC and the Basin PSC consist of several oilfields which have long histories of production. Accordingly, the Proposed Acquisition is likely to provide long-term positive cashflow and profitability.
RATIONALE FOR THE PROPOSED ACQUISITION. Following the completion of the disposal of the Company’s and Group’s distribution business (the “Distribution Business”) on 31 October 2013 for a base consideration of S$70 million, and completion of the partial disposal of the Company’s and the Group’s biofuel business for a consideration of S$1.53 million on 24 October 2014 which reduced the Group’s equity interest to 25% from 51% and the subsequent rights issue undertaken by the biofuel business which further diluted the Group’s equity interest from 25% to 0.5%, the Group’s remaining core businesses comprise the Shipyard Operations Business and Property Management Business and it has been the intention of the Directors to diversify the businesses of the Group. In their continued search for a new business to revitalise the Group and to bring in more revenue and income streams, the Directors have been exploring opportunities in the mining, oil and gas industry. On 23 June 2015, the Company announced that it had obtained the approval of the shareholders of the proposed diversification of the business scope of the Group to include mineral, oil and gas businesses. The Directors believe that the Proposed Acquisition has potential for growth and would benefit the Company and its shareholders.
RATIONALE FOR THE PROPOSED ACQUISITION. The Proposed Acquisition is in line with the Group’s growth strategy that focuses on development and investment properties in emerging countries. Driven by the lack of quality supply, Yangon’s luxury real estate market presently witnesses strong uptake in demand by the increasingly affluent locals. Given Yangon’s rapid transformation into a key residential and commercial powerhouse, the Company anticipates that the valuation of the Thu Kha Yadanar Project will continue to appreciate along with the surrounding area’s growth. The Thu Kha Yadanar Project has the potential to generate good development returns and yield. Further, given the strategic location and the timing of the Proposed Acquisition, the Company believes that the Proposed Acquisition will bolster the Group’s real estate portfolio and enhance Shareholders' value. Further, as Futura has full discretion for the Consideration to be satisfied by the issue of Consideration Shares, the Proposed Acquisition will strengthen the Company’s balance sheet and will minimise impact on the cash flow of the Company.
RATIONALE FOR THE PROPOSED ACQUISITION. The existing business of the Group is to provide mechanical manufacturing solutions focusing on data storage, office automation peripherals, ATM and kiosk products. In the financial results announcement of the Company for the 6-month financial period ended 30 June 2018 (“1H2018”), the Company announced, inter alia, that the Company is facing a decrease in global demand for its customers’ products thereby adversely affecting sales in Singapore and also the closures of the plating lines in the Suzhou and Shanghai plants resulting in the absence of sales in those plants. The Company further announced that in order to mitigate the uncertain sales demand in the next 12 months, the Group had embarked with high urgency on key initiatives that will further streamline operations in all its sites, especially in China in areas of manpower deployment and staff cost, operational efficiencies and key account management. In addition to the above, the Board is of the view that the Company should set new business directions in implementing growth initiatives and execute new investment strategies, which may include business diversification strategies. As such, the Board is of the view that the Proposed Acquisition is in the best interests of the Company and its shareholders (“Shareholders”) as the Target Group is profitable and will enable the Company to venture into a specialized industry of providing third party testing and inspection services in respect of foundation inspection, construction material inspection, structural inspection and road and bridges inspection. The Proposed Acquisition also presents a good opportunity for the Company to diversify its business and revenue stream. The Company will be seeking Shareholders’ approval at an extraordinary general meeting to be convened in due course for the diversification of the business of the Company in relation to the Proposed Acquisition (“Business Diversification”). Barring any unforeseen circumstances, the Directors are thus of the view that the Proposed Acquisition, if completed, will generate a sustainable revenue stream for the Group and represents a strategic diversification strategy for the Group towards improving its financial performance and position over a longer term.
RATIONALE FOR THE PROPOSED ACQUISITION. The Proposed Acquisition is in line with the ordinary course of business of Titijaya which is property development. The rationale for the Proposed Acquisition is also for TRSB together with CRECD as shareholders of Ampang Avenue to form a strategic collaboration in relation to the Proposed Development of the Land. The Board believes that the Proposed Acquisition will complement the Group’s existing business in property development for the Group to seek out new strategic growth and future expansion plan within the property development in Greater Kuala Lumpur as well as to ensure earnings sustainability for the Group moving forward.
RATIONALE FOR THE PROPOSED ACQUISITION. DVSB intends to engage into the business of research and development of products using high and ultra-high performance concrete. The Proposed Acquisition enable DVSB to acquire the necessary tools and equipments for the developing and manufacturing of architectural high and ultra-high performance products to the market. The Proposed Acquisition is part of Chin Hin’s vertical integration strategy and it represents a gateway for Chin Hin to further increase its product portfolio which creates a synergy effect and is expecting to generate positive earnings to the Group. The Proposed Acquisition also represents an investment by the Group into new concrete technology and the possible addition of new markets.
RATIONALE FOR THE PROPOSED ACQUISITION. The Board of Directors of the Company is of the opinion that the Proposed Acquisition shall be beneficial to the Company as it would provide sufficient storage facilities to the Purchaser to enable the Purchaser to manage the demands for liquefied petroleum gas under the cold weather in the upcoming peak business season. Furthermore, the capital expenditure for the Proposed Acquisition would also reduce the tax burden on the Company under the prevailing tax incentive schemes in PRC.
