Pteris

Pteris: entered into an MOU for the proposed acquisition of Shenzhen CIMC-TianDa Airport Support, for indicative consideration of ~$112m (9.5x FY12 target P/E). This will be satisfied by the issue of new Pteris shares at issue price of $0.13/sh. Pteris last closed at $0.123. The target is principally involved in the design, development, manufacture, installation and maintenance of passenger boarding bridges, ground support equipment and baggage handling systems. The Target has businesses across 40 countries and regions. The Target intends to continue with its existing business post-Proposed Acquisition. CIMC owns ~ 70% of the equity interest in the Target, and the remaining ~30% stake is owned by Shenzhen TGM. CIMC (2039 HK) is currently a significant sh/h of Pteris, with ~15% deemed interest held through subsidiary Sharp Vision. With Pteris having a mkt cap of $67.5m, this acquisition will effectively constitute a reverse takeover (RTO). At last close, Pteris trades at 0.93x P/B, was loss making over the last 12 mths.