CFA Society Singapore
SINGAPORE (Mar 26): Gaylin Holdings has entered into a non-binding letter of intent (LOI) with Lighthouse Logistics and Danny Lien to acquire 100% stake in Amos International Holdings.
The consideration for the acquisition has yet to be agreed on but is to be fully satisfied by the issuance of new Gaylin shares.
Amos International is a marine and offshore services company that provides supplies, services and logistic solutions to the maritime fleet and offshore oil and gas operators, and has operations in Singapore, Shanghai and Hong Kong.
Lighthouse and Lien respectively hold about 69.44% and 27.56% of Amos International.
As Lighthouse is an associate of Kyle Shaw, the executive chairman and controlling shareholder of Gaylin, and the total value of the proposed acquisition estimated at more than 5% of the Gaylin's latest audited net tangible assets, the deal will be classified as a major transaction, for which shareholders’ approval is required.
The parties have agreed to grant each other an exclusivity period of 120 days commencing from the date of the LOI, during which the parties will negotiate in good faith to enter into a legally binding sale and purchase agreement.
Monday's LOI follows the acquisition of a 76% stake in Gaylin by private-equity firm ShawKwei & Partners on Mar 13.
Kyle Shaw, managing director of ShawKwei, said in an interview with The Edge Singapore he aims to "acquire similar businesses" that can help return Gaylin to profitability.
In FY2017 ended March, Gaylin posted a net loss of $11.4 million.
Shares in Gaylin closed at 5.4 cents on Monday.