Zhuhai Yinlong Energy
The US$20 million (S$27 million) investment by Chinese electric-bus manufacturer Zhuhai Yinlong Energy (YLE) in a unit of struggling electronics engineering firm Dragon Group International is back on, albeit with a few changes after a renegotiation.
Dragon was placed on the Singapore Exchange's watch list on March 4, 2015 and will have to delist from the mainboard after it failed to meet the financial exit criteria before the deadline several times. The original proposed subscription of shares by YLE and Sputnik Energy, first announced in 2017, was not fulfilled and/or waived before the long-stop date of April 2018, so the agreements had been terminated.
The new share subscription agreement entered into on Thursday will see YLE subscribe for nearly a billion shares of Dragon's unit EoCell, which represents 40 per cent of EoCell's new enlarged share capital for US$20 million.
A management company to be incorporated, representing the key management of EoCell, will also subscribe for about half a billion shares to represent up to 20 per cent of the enlarged EoCell share capital, at a nominal consideration.
Sputnik Energy, which holds 7 per cent of EoCell with Dragon holding the balance 93 per cent, will no longer subscribe for EoCell shares.
EoCell is a joint venture between the company and Sputnik Energy, formed in 2015 to explore opportunities in the lithium ion battery and energy storage market.
RHT Health Trust
RHT Health Trust is asking holders of $120 million of 4.5 per cent notes due on Jan 22 for a six-month extension to their maturity date to accommodate delays in its asset sale to Fortis Healthcare. RHT Health Trust, which operates India-based healthcare assets, is seeking note holders' consent to push the maturity date to July 22, with redemption at maturity set at 100.45 per cent of the principal amount. Consenting note holders will receive a one-time 1 per cent consent fee.
Repayment of the notes was to be funded by the sale of RHT Health Trust assets to Fortis Healthcare. However, due to a delay in the buyout of Fortis by IHH Healthcare, the purchase agreement between Fortis and RHT would consequently be delayed, with the long-stop date now set at March 26. As the asset sale to Fortis is unlikely to be completed by Jan 22, RHT is seeking to extend the notes' maturity.
The meeting to seek note holders' consent will take place on Jan 21. DBS and UOB are acting as joint solicitation agents.