Alpha Returns Group plc : Update re investment, Proposed subscription and Board changes
Alpha Returns Group PLC
("Alpha Returns" or the "Company")
27 November 2013
Further re Telistar Solutions investment
Proposed subscription to raise £500,000
Further to the announcement made on 22 October 2013, the Board of Alpha Returns, the AIM traded investing company focusing on investments in high-growth Asian economies, is pleased to announce that it has, via its wholly owned subsidiary Shidu International Limited ("SIL"), paid the second tranche consideration of S$262,500 (approximately £131,000) due on its investment in Telistar Solutions Pte. Ltd. ("Telistar"), bringing the total cash consideration paid to date to S$612,500 (approximately £306,000). The final tranche consideration of S$412,500 (approximately £206,000) is payable on or before 31 December 2014, of which S$165,000 is payable in cash and S$247,500 is to be settled by the issue of new ordinary shares of 0.01p each in the capital of the Company at a 10% discount to a 10 day average closing price. The initial 18.75% shareholding in Telistar is expected to be received shortly with a further 18.75% due on payment of the final tranche.
Payment of the second tranche consideration for Telistar leaves the Company with limited flexibility to make further investments and the Company is proposing to raise an additional £500,000 though the issue of a further 55,555,555 new ordinary shares of 0.01p each in the capital of the Company (representing approximately 13.28 per cent. of the Company's existing issued ordinary share capital) to enable it to take advantage of potential investment opportunities expeditiously. It is intended that the subscription will be at a price of 0.9 pence per share. A further announcement will be made when the subscription has closed and funds have been received.
The Company is also pleased to announce the following board changes which are conditional on closing the fund raise referred to above.
Mr. Leung Hung Kee (Eric), FCCA, FLMI, aged 43, has agreed to join the Board as a non-executive director. Mr. Leung obtained a master's degree in business administration from a joint program of the Columbia Business School, the London Business School and The University of Hong Kong in June 2012, and a bachelor of arts degree in accounting and finance from the University of Lancaster in June 1993. He was admitted as a fellow of the UK Association of Chartered Certified Accountants in November 2003. From December 1993 to April 1999, Mr. Leung worked for Deloitte Touche Tohmatsu in Hong Kong, latterly as a senior accountant. From April 1999 to July 2007, he was employed by various insurance companies in Hong Kong, including as senior finance manager at CIGNA Worldwide Insurance Company and was mainly responsible for financial reporting and internal audit. From May 2008 to August 2011, Mr. Leung was engagement manager in Jefferson Wells HK Ltd before joining Ernst & Young Advisory Services Limited in August 2011. In October 2013, Mr. Leung was appointed chief risk officer at Hong Kong Life Insurance Limited and is also an independent non-executive director at Mega Expo Holdings Ltd., recently listed in Hong Kong.
Eric replaces Lim Hui Jie who will be resigning to pursue other activities.
Commenting, Christopher Neo, executive director, said: "We are pleased to announce that following a review of Telistar's business we have now accelerated payment of the second tranche of our investment. In addition, the proposed fund-raise will strengthen the Company's financial position giving us flexibility to pursue additional investment opportunities within the Asia-Pacific region. Lastly, but not least, the appointment of Eric will further strengthen the board's expertise in finance and investment. We have exciting plans for the coming year and I look forward to keeping shareholders informed of developments."
Mr Leung holds no shares in the Company and is now or has been within the last 5 years a director of the following companies:
Hong Kong Life Insurance Limited, Jade Top Limited, Mega Expo Holdings Limited, Wealthy Corporate Management Limited.
There are no further disclosures to be made pursuant to Schedule 2 paragraph (g) of the AIM Rules.
For further information:
Alpha Returns Group plc
Christopher Neo, Executive Director 020 3286 6388
ZAI Corporate Finance Limited (Nomad) 020 7060 2220
Peter Trevelyan Clark / Ivy Wang
Peterhouse Corporate Finance (Broker) 020 7469 0935
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Alpha Returns Group plc via Globenewswire