Tee International to acquire signage specialist Carats&Co for $14m

The company will acquire all shares of Carats&Co in two tranches.

Tee International has entered into a legally binding term sheet to acquire the entire issued and paid-up share capital of signage manufacturer Carats&Co.

In a bourse filing, Tee International said it will acquire the total issued and paid-up share capital of $2,000,000 comprising 2,000,000 ordinary shares in two tranches for $14m.

Under Tranche One, Tee International will acquire 1,200,000 sale shares held by Carats&Co shareholders or the vendors namely, Teo Kin Hua, Teo Kim Guan, Teo Chiew Moi Susie, Koh Tong Huat, Teo Kim Huat, and Cho Ann Fong. Tranche One acquisition represents 60% of the issued share capital of Carats&Co.

Under Tranche Two,  Tee International will acquire 800,000 sales shares or 40% of the issued share capital of Carats&Co. The acquisitions should occur within 12 months following the competition of the Tranche One acquisition.

“With respect to the Tranche Two Acquisition, each party or vendor shall have an option to negotiate with the other party or vendor to acquire a lower percentage of the issued share capital of the company, such amount to be between 20% to 40%, as may be agreed in writing between the respective parties,” Tee International said.