SINGAPORE - Baker Technology, together with private equity firm Point Hope, has entered into a binding term sheet with EMAS Offshore Limited (EOL) to potentially invest US$50 million (S$67.9 million) in EOL to aid in the group's financial restructuring.
Baker Tech and Point Hope will each invest US$25 million in cash. Baker Tech is making the investment through its unit, BT Investment.
EOL intends to restructure by way of a court-approved scheme of arrangement to deal with settlement and discharge of outstanding debts, and the issuance of new shares in EOL to Baker Tech and Point Hope.
This would result in Baker Tech and Point Hope owning a majority of EOL's share capital.
Details of the investment and the restructuring exercise are yet to be finalised.
Baker Tech and Point Hope said they intend to retain EOL's key management to ensure that its operations are not impacted by the restructuring.
Baker Tech shares fell 1 cent or 1.72 per cent to 57 Singapore cents on Monday (Sept 4) before the announcement was made.
EOL shares have been suspended since March.