Records One-off Sales Gain of Approximately HK$40,000,000 — Brings in Strategic Investor for i-Sprint to Strengthen Business Development
News Release – February 13, 2014
(Hong Kong, 13 February 2014) – Automated Systems Holdings Limited (“ASL” or “the Group”) (HKEx stock code: 771), a leading IT services provider in the region, has announced that its subsidiary i-Sprint Innovations Pte Limited (“i-Sprint”) has reached a subscription agreement and completed the transaction on 12 February 2014 with Great Ally Investments Limited (“Great Ally” or “Investor”), a wholly-owned subsidiary of Peregrine Greater China Capital Appreciation Fund, L.P. managed by Bull Capital Partners Ltd. According to the agreement, i-Sprint has agreed to issue and allot 118,973,914 new shares to Great Ally, representing 41.67% of the enlarged issued share capital of i-Sprint, following the completion for a consideration of US$9,850,000 (equivalent to approximately HK$76,833,073). Upon completion, the Group records an unaudited one-off investment gain of approximately S$6,550,000 (equivalent to approximately HK$40,000,000) *. Its shareholding in i-Sprint is 48.22% while i-Sprint ceases to be a subsidiary of the Group yet the Group remains i-Sprint’s single largest shareholder.
The proceeds raised from the subscription will be used for funding the working capital of i-Sprint, expanding i-Sprint’s customer base and development of new projects, funding new projects relating to mobile network security sector and potential acquisitions of technologies and complementary business or target entities. There will be future cooperation between ASL and the investor which will bring synergies to the Group.
In addition to raising additional capital for future business development and thereby enhancing the value of i-Sprint, the introduction of a strategic investor will strengthen i-Sprint’s shareholder base while enhancing its reputation. i-Sprint can also benefit from the investor’s innovative market insights, abundant experience in different industries and solid network when considering and expanding into new business opportunities. The Group believes that Great Ally will bring expertise in the planning for the initial public offering of i-Sprint in the future, which will enable the Group to materialize its investment in i-Sprint at the earliest opportunity.
* Based on the net assets value of the i-Sprint Group as at 31st March 2013. The actual gain to be recorded by the Company will be assessed after the Completion and is subject to audit.
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