Asia Enterprises to acquire over 28% stake in GKE Metal Logistics

The transaction amounts to $8.86m, or $24.75 for each share.

Asia Enterprises Holding Limited has entered into a sale and purchase agreement (SPA) with Hung Lin Holding Ltd for the acquisition of 358,000 shares (28.64%) in GKE Metal Logistics Pte. Ltd. for $8.86m, according to a bourse filing.

The book value of the sales share, being 28.64% of the existing total issued and paid-up capital of GKE Metal Logistics, is at around $4m-$4.5m, respectively, as of 30 June 2024.

The proposed acquisition will be settled by issuing 28.4 million new ordinary shares to the vendor, Li Jing, at an issue price of $0.312 per consideration share.

The issue price of $0.312 represents a premium of approximately 240% to the volume weighted average price of $0.130 (VWAP) for each share of the company based on trades done on the SGX-ST on 30 December 2024, the last full market day when the shares of the company were traded before the execution of the SPA.

Once completed, Li Jing will hold approximately 7.69% of the enlarged total issued and paid-up capital of Asia Enterprises.