Europtronics plans share consolidation, new share issuance to fund acquisition
Singapore-listed Europtronics is proposing a share consolidation as part of its plan to fund a reverse takeover of gold mining company Gold Impact.
Europtronics will undertake a 7-into-1 consolidation, where shareholders will receive one new consolidated share for every seven ordinary shares they currently hold, the company said on Wednesday.
The process, also known as a reverse stock split, will reduce the number of Europtronics shares in issue while increasing the value per remaining share.
After the share consolidation is completed, Europtronics will then issue 320 million new consolidated shares at 50 cents apiece, raising $160 million for the acquisition of Gold Impact.