Next Gen Sat Comm

Next Gen Sat Comm: lifts halt at 3.45pm. To acquire 51% stake in Scientific Discovery Devt SA (“SDD”), a licensed provider of disaster back up services to financial institutions in China, for Rmb 51m ($10.3m). This compares with the NTA and net profit of $2.94m and $1.16m respectively, for SDD’s key operating subsidiary Beijing Satbit. Payment will be in 3 tranches, i) Rmb 15.3m upon gaining full control of SDD, ii) Rmb 15.4m by Jun ’13, and iii) Rmb 20.4m by Jun ’14. Next Gen also has an option to acq the remaining 49% of SDD within 3 yrs from the date of completion of the acq. This will depend on whether Beijing Satbit will be able to attain an EBITDA of not less than Rmb 17m for each of the 5 FY12-16. The group expects to fund the acq through internal resources. The stock is down 6.3% at 1.5cts.