Europtronic / WE Holdings

Europtronic / WE Holdings: Europtronic has entered into an MOU with WE Holdings for the proposed sale of its wholly owned subsidiary, Europtronic (Singapore) (ESPL). WE Holdings has a 4 mth exclusive period to conduct due diligence. Consideration, to be satisfied by the issuance of new WE Holdings shares, shall be determined based on the sum of: - the NTA of ESPL, and - a goodwill of $2m The proposed sale of ESPL is part of Europtronic’s continuous efforts to release the group from loans and other corporate guarantees and is part of the process relating to its on-going proposed RTO. Europtronic intends to utilize the proceeds for working capital and to reduce bank loans. The proposed acquisition will allow WE Holdings to expand the components business of the group to achieve economies of scale and to broaden the group’s revenue stream. Mgt believes the acquisition is synergistic, as Europtronic distributes a different product range within the component business, thereby providing the group with an expanded network of customers and distribution channels.