Arion Entertainment’s YYB executive director, Ng Kai Man, has sold his entire stake amounting to 20.75% of the total shares in the company to Dong Ling Electrical Group via a share purchase agreement (SPA) on March 21.
The stake, representing 193.8 million shares, was sold for a consideration of $2.9 million.
Under the SPA, Ng and, or Dong Ling will “provide the necessary financial assistance” to Arion for its working capital needs.
Should Arion be thinking of disposing its existing subsidiaries, Ng will try to procure potential third-party purchasers.
Under the terms of the SPA, Dong Ling Electrical Group will nominate a person to Arion’s board with effect from the completion date of the proposed sale.
In its filing, Arion added that the sale is unrelated to any events such as the liquidation, bankruptcy or insolvency of the company, the appointment of any assignee, receiver or liquidator for substantially all or part of the assets or business of the company or SGX-ST removing it from its Catalist board.
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Following the completion of the sale, Ng will no longer have a stake in Arion while Dong Ling will become its single largest controlling shareholder. However, Ng will remain as Arion’s executive director upon the completion of the sale.
Dong Ling Electrical, which was incorporated in Hong Kong, is an investment holding company and is 100%-owned by Hong Kong-incorporated Ever Sino Industrial Ltd. Ever Sino Industrial is, in turn, 100% owned by China-incorporated Guangdong Donlim Kitchen Group Co. Ltd.
The shareholders in Guangdong Donlim Kitchen Group are Chinese citizens and family members Guo Jiangang, Guo Jianqiang and Guo Zhizhao who hold stakes of 60%, 30% and 10% respectively. The individuals are accordingly also the ultimate beneficial owners of Dong Ling Electrical.
Shares in Arion closed at 0.7 cents on March 21.
