Thursday, October 25, 2012

Ezion / YMH

Ezion / YMH: Ezion announced that it has entered into a subscription agreement with YHM Group, Sunshine Capital Group and Stone Forest Corporate Advisory, in which Ezion shall subscribe for 3.2b new ordinary shares in YHM at the issue price of $0.0018; and an option agreement, in which YHM shall issue 3.96b share options, with each Option carrying the right to subscribe for one new ordinary share in the capital of YHM at the issue price of $0.0018. YHM, formerly known as China EnerSave Limited, is engaged in the scaffolding business catering to the construction and marine industries.The aggregate consideration of $5.76m will be satisfied by allotment and issuance of 4.63m Consideration Shares, at an issue price of $1.2454, a discount of 10% to vwap of $1.3838 for trades done on 23 Oct12. The Consideration Shares represent approximately 0.54% of the total enlarged issued share capital of the Co. Upon completion of the Subscription, Ezion will hold approximately 44.1% of the total enlarged share capital of YHM (assuming no Options have been exercised), and is required to make a mandatory general offer for all the remaining YHM Shares. Ezion does not intend to apply for a waiver from the Securities Industry Council. Both Co’s are of the view that the Subscription is in the best interest of the Co’s as YHM will be entering into oil and gas related projects which are complementary to the existing business of the Group. This represents an opportunity for synergy and both co’s stand to benefit from each other’s growth in their respective areas.

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