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21 May 2005
AGREEMENT TO ACQUIRE 60% OF ECO ENVIRONMENTAL PTE LTD
ecoWise Holdings Limited (“ecoWise” or the “Company”) wholly
owned subsidiary ecoWise Solutions Pte Ltd (ecoWise Solutions”)
has on 9th May 2005 signed a conditional agreement (the
“Agreement”) to acquire 60% of the issued and paid up share
capital of Eco Environmental (S) Pte Ltd , which is a waste
management and disposal service provider.
RATIONALE FOR THE ACQUISITION
At present, ecoWise is a waste management and environmental
solutions service provider and Eco Environmental provides
services which are complementary to ecoWise’s services. The
Acquisition, if completed, will enable ecoWise to provide more
comprehensive services to its customers. Eco Environment is a
service provider for general waste management, collection,
recycling and disposal.
PRINCIPAL TERMS OF THE ACQUISITION
ecoWise Solutions intends to acquire 60 per cent. of the Eco
Environmental Shares from 4 individual shareholders. After the
Acquisition, Eco Environmental will be a 60% subsidiary of
ecoWise.
The Purchase Consideration for the Eco Environmental Shares,
will be satisfied by a cash consideration of S$360,000.
The Purchase Consideration was arrived at on a willing buyer,
willing seller basis. It was calculated at 3.75 times price
earnings ratio based on the historical net earnings per share of
Eco Environmental for FY2004. The Acquisition will be funded by
bank borrowings and internal resources.
The Acquisition is conditional upon: -
(i) relevant and requisite legal or regulatory consents and
approvals being obtained including but not limited to the SGX-ST
for the transactions contemplated under this Agreement being
obtained, and not withdrawn or amended (if required); and
(ii) satisfactory due diligence (including legal and financial
due diligence) by ecoWise Solutions.
DOCUMENT FOR INSPECTION
A copy of the Agreement is available for inspection during
normal business hours at the registered office of ecoWise, at
No. 3 Phillip Street #14-01, Commerce Point Singapore 048693 for
a period of 3 months from 9th May 2005.
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