Control of Arion Entertainment Singapore, an investment holdings company with its main interest in publishing magazines, is poised to change for $3 million.
On April 13, the company announced that a trio of existing shareholders, including executive director Ng Kai Man (picture), are selling their combined stake of 27.44% to another listed company, Ntegrator International.
Under terms of the sale and purchase agreement, Ng and two other shareholders, Ivy Chan Shui Sheung and Lee Chun Ming will sell a total of 256.3 million shares at 1.17 cents each.
While the trio will no longer be substantial shareholders, Ng will remain as the executive director “immediately after” the completion of the sale. Ntegrator plans to nominate two directors to Arion Entertainment’s board.
Ntegrator is headed by executive director Christian Kwok-Leun Yau Heilesen. He assumed control of network engineering firm Ntegrator last year after accumulating sufficient shares to oust the previous board at an AGM. Heilesen controls another SGX-listed company as well, Incredible Holdings.
The shares will change hands via two phases. First, Ntegrator will pay $1 million cash for 85.4 million shares via a married deal with Ng, Chan and Lee.
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The remaining 170.9 million shares will be transferred in exchange for $2 million by way of promissory notes or other payment methods mutually agreed in writing. The promissory notes bear no interest and are not redeemable at the option of noteholders.
According to Ntegrator in its separate announcement, the acquisition is part of its “overall corporate strategy to pursue diversified returns and identify potential acquisition targets for long-term growth.”
Ntegrator sees this deal as a strategic long-term investment with the potential for “investment income and capital gains, new revenue streams, improve its profitability and growth profile that will enhance sustainable shareholder value going forward.”
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Ntegrator expects to close this deal in the second quarter of the year.
Ntegrator shares closed on April 13 at 0.5 cent, up 25% for the day but down 50% year to date.
Arion Entertainment shares closed on April 13 at 0.8 cent, unchanged for the day and down 20% year to date.
