Adamas Finance Asia Limited Disposal of Interest in Global Pharm (8250Q)
September 15 2017 - 2:00AM
UK Regulatory
TIDMADAM
RNS Number : 8250Q
Adamas Finance Asia Limited
15 September 2017
ADAMAS FINANCE ASIA LIMITED
(the "Company", "ADAM" or the "Group")
DISPOSAL OF INTEREST IN GLOBAL PHARM
Adamas Finance Asia Limited, a London quoted pan-Asian
diversified investment vehicle, is pleased to announce the disposal
of the Group's interest in Global Pharm Holdings Group Inc.
("Global Pharm") (the "Transaction"). The Transaction is in line
with the Company's objective of maximising shareholder returns
through a managed disposal programme of its legacy portfolio where
commercially viable and reinvesting the proceeds in pan-Asian
income producing assets with capital gain potential.
Terms of the Transaction
On 15 September 2017 (the "Signing Date"), the Company entered
into a sale and purchase agreement with Fortune Insight Limited
("Fortune") (the "SPA") for the sale of its 75% interest in Blazer
Delight Limited ("Blazer Delight"), through which ADAM holds its
interest in Global Pharm (the "Global Pharm Interest") for US$15.6
million in cash, which is payable by Fortune within 120 days of the
Signing Date.
The Group's interest in Global Pharm was transferred to Fortune
on the Signing Date. In the event that Fortune does not meet its
payment obligations under the SPA, Fortune will transfer the Global
Pharm Interest back to ADAM for nil consideration.
Global Pharm Interest
In February 2014 as part of a reverse takeover, the Group
acquired a 75% interest in Blazer Delight, which was a special
purpose vehicle holding a convertible bond issued by Global Pharm.
At that time, the Global Pharm Interest was independently valued at
US$22.4 million (net to ADAM). The Company has received payments of
approximately US$6.0 million since the acquisition of the interest
which is now being sold for US$15.6 million.
In the Company's audited accounts for the year ended 31 December
2016, the carrying value of the Global Pharm Interest was valued at
US$17.3 million. As the negotiated sale price for the Global Pharm
Interest is below the Company's current carrying value, completion
of the Transaction will result in an accounting loss of US$1.7
million which will be recognised in the results for the six months
ended 30 June 2017.
Related party transaction
Fortune is managed by affiliates of Adamas Asset Management (HK)
Limited ("AAM"). The Company's largest shareholder, Elypsis
Solutions Limited, is also managed by affiliates of AAM and
therefore the Transaction is classified as a related party
transaction under the AIM Rules for Companies.
The Directors, having consulted with WH Ireland Limited, the
Company's nominated adviser, consider that the terms of the
Transaction are fair and reasonable insofar as shareholders are
concerned.
Suresh Withana of Harmony Capital, the recently appointed
Investment Manager to ADAM, stated:
"We are pleased to have achieved the sale of the Global Pharm
Interest, which is in line with our objective of exiting the
Company's legacy assets where commercially viable and reinvesting
the proceeds in pan-Asian income producing assets with capital
growth potential. Although the sale is at a loss, the long-term
beneficial impact to the Company from the sale of this investment,
should be significant."
Enquiries:
Adamas Finance Asia Limited
John Croft +44 (0) 1825 830587
WH Ireland Limited - Nominated Adviser
+44 (0) 113 394
6600
Tim Feather +44 (0) 117 945
Ed Allsopp 3444
finnCap Limited - Broker
William Marle +44 (0) 20 7220
Grant Bergman 0500
Buchanan - Financial PR
Charles Ryland
Victoria Hayns +44 (0) 20 7466
Henry Wilson 5000
About Adamas Finance Asia
ADAM is a London quoted investment company focusing on
delivering long-term income and capital growth to shareholders
through a diverse portfolio of pan-Asian investments.
ADAM aims to provide uncorrelated returns through a combination
of capital growth and dividend income from a broad spectrum of
national geographies and asset classes.
The Company's recently appointed investment manager Harmony
Capital, which has a dedicated team with real Asian expertise, will
focus on the strategy of creating income and capital growth as well
as addressing the issues of the ongoing legacy portfolio. Harmony
is sourcing predominately private opportunities and a strong
pipeline already exists. Income generating assets include
investments in property, mining, pharmaceuticals, and telecoms
across Asia.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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