News and Announcements
iFast Enters Into MOU To Sell A 5% Stake In iFast China Business
- Published April 29, 2016 3:15PM UTC
- Publisher Wholesale Investor
- Categories Company Updates
The Board of Directors (the “Directors” or the “Board”) of iFAST Corporation Ltd (“iFAST” or the “Company” and together with its subsidiaries, the “Group”) wishes to announce that its wholly-owned subsidiary, FA Corporate & Compliance Consultancy Pte. Ltd. (Company Registration No. 200722799G), which is intended to be renamed as iFAST China Holdings Pte. Ltd., (“iFAST China Holdings”), had, on 28 April 2016, entered into a non-binding memorandum of understanding (the “Memorandum”) with Caerulean Limited (BVI Company No. 1904290) (“CL”) with its registered address at c/o Offshore Incorporations Limited, P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands (collectively, the “Parties” and each, a “Party”).
Pursuant to the Memorandum, (i) CL is desirous of subscribing for, and iFAST China Holdings is desirous of issuing and allotting, such number of newly issued ordinary shares in iFAST China Holdings, representing 5% of the share capital of iFAST China Holdings on an enlarged basis, at a cash consideration of USD1.75 million (the “Proposed Subscription”); and (ii) the Proposed Subscription shall be completed by June 2016 (“Completion”). The consideration for the Proposed Subscription was arrived at on a willing-seller and willing-buyer basis. Following Completion, CL will hold a 5% shareholding interest in iFAST China Holdings on an enlarged basis.
CL is an investment-holding company which was incorporated in the British Virgin Islands in January 2016. Its directors are Mr Lim Wee Kiong and Mr Wong Tin Niam Jean Paul. Its shareholders include Mr Wong Soon Shyan, Mr Lim Wee Kiong and Mr Wong Tin Niam Jean Paul. Mr Wong Soon Shyan, Mr Lim Wee Kiong and Mr Wong Tin Niam Jean Paul are iFAST employees.
The Group will be undergoing some internal restructuring, such that post-restructuring, iFAST’s China business will comprise iFAST China Holdings and its wholly-owned subsidiary in China (“iFAST China Business”). Based on the unaudited financial results for the financial period ended 31 March 2016, the consolidated net asset value of iFAST China Business amounted to approximately S$2.53 million. Upon Completion of the Proposed Subscription, the Group may see an estimated gain of S$2.12 million based on the financial position of the iFAST China Business as at 31 March 2016. However, the gain is expected to be recognised in the reserves instead of the income statement of the Group.
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