Spice i2i: Acquires Newtel Group, a Thai-based mobile phone supplier group for US$17m-29m from a Mr Li. The acq consists of US$10m cash upfront, US$7m injection into Newtel for new equity, a US$3m interest-free loan to Newtel and a 3 yr deferred profit performance based scheme of a maximum US$12m to Mr Li. Mr Li in turn will loan $5m interest-free to Newtel and remain employed as a director…
As from 1 Jan - 30 Sept 2010, Newtel made a net loss of US$2.8m and has book value of $26.2m. The purpose of acq is to expand in mkts like Thailand and greater Mekong area. Funding from proceeds of rights issue on 15 Jun 2010. Acquisition price cheap compared to book value, profit scheme not detrimental since co is loss making. Long-term positive for i2i esp for strategic purposes.
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