vLink Global to own 33.3 pct stake in B-Tech after share swap deal
HONG KONG (AFX-ASIA) - vLink Global Ltd will become the largest shareholder in B-Tech (Holdings) Ltd with a 33.3 pct stake after a share swap deal, both companies said in a statement. In addition, vLink Global's wholly-owned subsidiary, vLink Global Investments Ltd will make available a 29.5 mln hkd loan facility in two tranches to B-Tech. The facility will be secured by B-Tech's 22 pct stake in PiLink International Ltd and wholly-owned unit, Easycom Ltd and a few floors of parking spaces in Shanghai. In a joint statement, the companies said that under the first agreement, vLink has issued 42.765 mln new shares at 0.80 hkd per share to B-Tech in return for 3.421 bln B-Tech shares at 0.01 hkd per share. In the second agreement, vLink is proposing to issue 171.061 mln new shares at 0.30 hkd for 5.131 bln shares in B-Tech at 0.01 hkd per share. On completion of the share issues, vLink will hold a 33.3 pct stake in B-Tech, while the latter will hold a 3.7 pct stake in vLink. Although the vLink shares are being issued at a "substantial premium to the market price", B-Tech directors believe that the move is in the interest of the company and that the terms of the agreements are fair and reasonable. The move will introduce a financially strong shareholder into B-Tech as the company has short term liquidity problems, is a party to a number of litigations and has been served with a winding-up petition, the statement said. In addition, the placement of 3.421 mln new B-Tech shares by Upbest Securities Co Ltd will not proceed after Upbest released its exclusive right to place the shares. The statement said B-Tech has been served with another winding up petition on March 31 and the company is currently seeking legal advice on the matter. Both companies intend to hold the shares in each other as a long term investment. Three directors will be named to the B-Tech board by vLink, the statement added.
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