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RTO by Golden Oriental
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zhuge_liang
Supreme |
24-Jan-2008 20:20
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Bright Orient is to give up its clothing manufacturing operation after buying a bulk carrier and port operation business in a RTO deal worth some $160.5m. Bright Orient said that it entered into a conditional agreement to acquire the entire issued and paid-up capital of Golden Oriental Pte Ltd. It will pay the vendors by issuing some 2 billion new Bright Orient shares. 80% of the escrowed shareholders' stake will be issued to vendors Guo Ze Ming, Chang Poh Nee, Sarah Sim Kim Lian and Wan Teck Guan when the acquisition is completed. The remaining 20% will be released if the enlarged group achieves a net profit of at least $18m for the year ending Mar '09. Upon the completion of the deal, Bright Orient will issue 60.7m facilitator shares to Pacific Ten Holdings and 39.7m facilitator shares to Joy Wing Enterprises for helping in the acquisition, it said. In the statement, the firm said that it has been facing difficulties since '06, mainly due to the increase in the prices of raw materials and energy, labour shortage, shortages in electric power, the increase in the value of yuan, the reduction in the export refund rate and the increase in corporate taxrate. For the half-year ended Jun 30 '07, Bright Orient reported a 46.5% plunge in net profit attributable to shareholders to 1.25 million yuan ($247,75), even though sales rose 14.4% to 222.4 million yuan. |
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