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Investor Relations
Announcements
Tuan Sing Holdings Limited
1 Feb 2010
Tuan Sing Holdings Limited (the “Company”) wishes to announce that it has today entered into a Sale & Purchase Agreement with Pan-West (Private) Limited (“Pan-West”) for the acquisition of properties known as 59 Jalan Pemimpin, #01-03, #01-04 and #05-01 L & Y Building, Singapore (the “Property”) by way of the acquisition of the entire issued and paid-up share capital of Pan-West Development Pte. Ltd. (the “Transaction”). The Transaction is conducted in the ordinary course of the Group’s property investment business.
Pan-West Development Pte. Ltd.
The principal activities of Pan-West Development Pte. Ltd. (“PWD”) have been that of property and investment holding company and its sole principal asset is the Property.
The Company through its wholly owned subsidiary, TS Planet Sports Pte. Ltd., owns 60% of the issued share capital in Pan-West and PWD is in turn a wholly-owned subsidiary of Pan-West. Consequent to the Transaction, PWD will become a direct wholly-owned subsidiary of the Company.
Purchase Consideration, Valuation and Source of Funding
The net purchase consideration for the Transaction is S$0.923 million (the “Purchase Consideration”) which is the adjusted net tangible assets value of PWD. The Purchase Consideration is arrived at on a willing-seller willing-buyer basis taking into account, inter alia, the market value of the Property at S$7.030 million and netting off certain bank loans and other liabilities of PWD. In addition, one of the key terms of the Transaction is for the Company to disburse an additional sum of S$1.785 million to Pan-West being the full and final settlement of an amount owed by PWD to Pan-West. In determining the market value of the Property, a report from an independent professional valuer, Jones Lang LaSalle and dated August 2009 had been used as a reference.
The Transaction has been funded by internal resources.
Rationale and Benefit
The Transaction is in line with the Company’s strategy to focus on its core business in the property segment and should provide additional future revenue and cash flow.
Directors’ and Controlling Shareholders’ Interests
Messrs Choo Teow Huat, Albert and David Lee Kay Tuan (both non-Executive Directors of the Company) sit on the board of directors of Pan-West representing the Company’s interest.
Save as abovementioned, none of the Directors or Controlling Shareholders of the Company has any interest, direct or indirect, in the Transaction.
Financial Effects
The Transaction is not expected to have any significant impact on the consolidated net tangible assets or earnings per share of the Company for the current financial year ending 31 December 2010.
Submitted by Mary Goh Swon Ping, Company Secretary, by order of the Board on 01/02/2010 to the SGX-ST
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