Ocean Sky

Ocean Sky: Entered a six-month non-binding MOU to acquire Link (THM) Holdings for $226.2m, in a transaction which would result in a RTO of the property developer upon completion. Link has a development track record of more than 10 years with over 30 projects, comprising luxury landed residential, integrated mixed development, commercial and industrial properties. In its pipeline is an integrated mixed development, One World Medini- a 444,703 sm gfa project located in the Media Village Medini in Iskandar, expected for completion in 2018. The vicinity is intended to be the financial district and a premium shopping belt, dubbed the "Orchard Road of Singapore". In addition, Link also has an investment property portfolio of an undisclosed number of commercial and industrial properties in Singapore's CBD. The consideration of the deal is expected to be via an issue of 642.8m new shares, after completing a 2-into-1 consolidation, at $0.352/share. Upon completion, Link will own ~72.1% of the enlarged issued share capital of Ocean Sky. Recall, Ocean Sky was once an intended acquisition of SGX-listed Ezion Holdings, when share price shot up to a high of $0.46 (+265%) over a six-week period from Aug 2013. Subsequently, the deal did not go through five months later, and share price crashed back down to $0.126. Counter is up over 15% in the first few minutes of trade. We caution investors on the speculative aspect of the deal and expect share price to be highly volatile as the market ingest the news.