Adamas Finance Asia Limited Restructuring of Investment in Fortel (8775L)
October 06 2016 - 4:26AM
UK Regulatory
TIDMADAM
RNS Number : 8775L
Adamas Finance Asia Limited
06 October 2016
Adamas Finance Asia Limited
("ADAM", the "Company" or the "Group")
RESTRUCTURING OF INVESTMENT IN FORTEL TECHNOLOGY HOLDINGS
LIMITED
The Directors of ADAM are pleased to announce that as a result
of a restructuring the Company's indirect 33.6% shareholding in
Fortel Technology Holdings Limited ("FTH") has been converted into
a US$11.3 million interest-bearing loan. The conversion represents
a step in the Company's long-term strategy to convert its legacy
portfolio into income-generating assets. As at 30 June 2016 the
Group's portfolio was valued at US$110.1 million, with the interest
in FTH representing US$11.3 million.
BVI-based FTH previously controlled all of the economic interest
in the Fortel IT solutions and services businesses in China, which
include the I-Buying e-commerce operation. The restructuring of FTH
has been undertaken in preparation for the IPO of I-Buying on the
National Equities Exchange and Quotations market in Beijing, China
(the "Restructuring").
The Restructuring involved an intra-group transfer of the Fortel
IT solutions and services business to I-Buying as a pre-cursor to
I-Buying seeking the IPO. As a result, FTH no longer controls an
operating business, and accordingly ADAM has negotiated a new
instrument to preserve its economic interest.
Under the Restructuring, HK-based Fortel Solutions Limited
("FSL"), which is a wholly owned subsidiary of FTH, has provided a
loan (the "Loan") of RMB119 million (approximately US$18.1 million)
to Mr. David Chen and Ms. Zhong Ying Ying (the "Borrowers") who now
own 100% of the I-Buying business. ADAM's wholly owned subsidiary,
CPE TMT Holdings Limited ("CPE"), has transferred its equity
shareholding in FTH to Imperia Capital Investment Holdings Limited
("Imperia"), a major shareholder in FTH. In return, FSL has novated
to CPE US$11.3 million worth of the Loan.
The terms of the novated portion of the Loan are that it is
repayable after three years and has a coupon of 3% per annum in the
first year and 8% per annum thereafter. Duncan Chui who, as a
result of the Restructuring, indirectly controls a significant
shareholding in FTH, has personally guaranteed the obligations of
the Borrowers to the Company in respect of the Loan. The Loan is
secured by a share pledge of the 33.6% equity stake in FTH that has
been transferred to Imperia.
ADAM Chairman John Croft said: "This restructuring represents a
small but significant move in line with our stated objective of
positioning the Company to become cash generative with no legacy
asset portfolio. It fits with our intended focus on collaterised
lending, structured finance and strategic finance."
Enquiries:
Adamas Finance Asia Limited
John Croft +44 (0) 1825 830587
WH Ireland Limited
Tim Feather +44 (0) 113 394
Ed Allsopp 6600
First City Public Relations
(Hong Kong) +852 2854 2666
Allan Piper
This information is provided by RNS
The company news service from the London Stock Exchange
END
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