WE Holdings extends $22m loan to Jubilee Industries

It will consist of a convertible loan and a direct loan.

Singapore-listed distributor WE Holdings has entered into an agreement with Jubilee Industries Holdings Ltd. to extend loans amounting to around $22 million (US$16 million).

The loans will comprise of convertible and direct loans each amounting to US$8 million.

According WE Holdings Executive Chairperson Terence Tea, this would benefit the group, as it will be entitled to convert any outstanding amounts into shares in Jubilee, enabling WE Holdings greater control.

Tea explained that WE Holdings has been granted the right to convert the loan into conversion shares based on 120% of the volume weighted average price.

"Additionally, WE Holdings’ revenue will be supplemented by the interest accrued from both loans, enabling us to support our systems integration business," he noted.

He added, "Jubilee benefits from added working capital provided via the loans, thereby enabling it to realise its full potential in the electronic components business."

Meanwhile, the group also announced its intention to expand its existing business into the corporate accretion services sector, with a focus on the FinTech and education industries.