China Fashion: the stock is +8.5% at 5.1cts today, amongst the top actives.
Trading activity in this counter has been above average since the later part of Feb this yr.
On 20 Feb, the co announced the acq of 49% stake in Techwin Energy Benakat Timur (TEBT) from Techwin Energy (TEL). TEBT is an SPV, which will operate a producing oilfield in Benakat Timur, South Sumatra. The consideration is $44.6m, to be satisfied in lieu of 557.4m new shares in China Fashion at 8cts/sh (37.2% of enlarged share base). Completion of the transaction is subject to a number of conditions precedent. In addition, China Fashion will extend a convertible loan of US$4m to TEL.
China Fashion will be issuing 176m new shares at 6cts/sh, to fund the proposed convertible loan and costs relating to the proposed acquisition. The dilution will be 23% of existing sh base. Maybank Kim Eng has been appointed as the placement agent.
At end Feb, the co also reported a FY11 total net loss of $7.3m, mainly due to admin expenses, as the co currently has minimal operating business.
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