Wepco to buy HSR in reverse takeover

Catalist-listed electro-plating and industrial engineering services firm Wepco said on Monday that it is acquiring real estate firm HSR in a reverse takeover.

It is buying the entire issued share capital of HSR for a consideration of S$40 million. The purchase will be satisfied by the issue of new ordinary shares.

Wepco will issue some 80 million consideration shares at a price of 50 cents per share. At that price, it represents a premium of about 117 per cent over Wepco’s last closing price of 23 cents.

In connection with the reverse takeover, Wepco will be applying to transfer the company from the Catalist board to the Singapore Exchange’s mainboard.

Wepco said the proposed acquisition will allow it to enter into a new business with a well-known, large and experienced company.

It added that it would be acquiring a profitable business with a credible operating track record in its purchase of HSR.

Wepco also pointed out that the acquisition would have the potential to significantly increase its market capitalisation.

Source : Channel NewsAsia – 16 Nov 2009

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