United Envirotech Ltd. entered into sale and purchase agreement to acquire 13.18% stake in Memstar Technolgy Ltd. from Ge Hailin and Pan Shuhong for SGD 35.3 million.
Under the sale and purchase agreement, Pan Shuhong shall continue to serve as the Executive Chairman of Memstar Technolgy and Ge Hailin shall continue to serve as the Chief Executive Officer of Memstar Technolgy. Transaction is subject to conditions including third party, governmental or regulatory body approvals, approval in-principle being granted by the SGX-ST for the listing of and quotation for the shares and Memstar Water Pte. Ltd. having entered into a joint venture agreement with United Envirotech in relation to their investment in Max Rise Water Services Holdings Limited through Max Rise Envirogroup Limited. In the event that any of the completion conditions is not fulfilled or is not waived the agreement shall ipso facto cease. If any of the payment conditions precedent is not satisfied or waived on or before the payment date, United Envirotech will transfer back to Ge Hailin and Pan Shuhong 50% of the sale shares, and the 2nd tranche consideration will no longer be payable by United Envirotech to Ge Hailin and Pan Shuhong. The completion of the transaction is expected to occur on the date falling three business days after all the conditions precedent are satisfied or waived in writing or such other date as shall be agreed. As of January 23, 2013, the transaction has been approved in-principle by SGX-ST for listing of the consideration shares. Stirling Coleman Capital Limited acted as arranger to the transaction. Wong Gang of Shook Lin & Bok acted as legal advisor for United Envirotech.