(Co. Reg. No. 196800586R)
(Incorporated in the Republic of Singapore)
Scheme of Arrangement in respect of the Settlement of Overdue Trade
Receivables Owed to a Subsidiary
1. Introduction
1.1 The Board of Directors (the "Board") of Lion Asiapac Limited (the "Company")
refers to the announcement dated 14 February 2012 (the "2012
April 2011.
1.2 Unless otherwise defined, capitalised terms used in this announcement shall have the same meaning as set out in the 2012 Announcement.
2. Revised Cash Settlement
2.1 The Board wishes to announce that, Megasteel had informed all Scheme Creditors (including Compact), that there has been a delay in the completion of the Steel Investment by new investors and also financial constraints faced by Megasteel. In view of the foregoing, Megasteel had proposed a revised settlement proposal in respect of the Proposed Cash Settlement (the "Revised Cash Settlement") as follows:Payment Date | Settlement Ratio |
Every month end starting from January 2013 to June 2013 | 6 equal instalments from January 2013 to June 2013 for one-third (1/3) of the Proposed Cash Settlement. |
Every month end starting from July 2013 to December 2013 | 6 equal instalments from July 2013 to December 2013 for the remaining two-third (2/3) of the Proposed Cash Settlement. |
2.2 Under the original terms of the Scheme, the Proposed Cash Settlement would have been payable at the earlier of (i) five (5) market days from the completion date of the Steel Investment by new investors in the LCB group, the LDHB group and the LICB group and (ii) 31 December 2012.
2.3 Pursuant to the terms of the Revised Cash Settlement which has been accepted by Compact, the cash settlement amount of RM1.89 million (approximately S$0.78 million) owing to Compact shall be repaid in monthly cash instalments in the following manner:
Scheme of Arrangement (Revised Cash Settlement) Pg 1 of 2
At every month end | Settlement computation | Monthly repayment amount |
January 2013 to June 2013 | Monthly repayment: = [(1/3) x RM1.89 million] / 6 months | RM 105,000 |
July 2013 to December 2013 | Monthly repayment: = [(2/3) x RM1.89 million] / 6 months | RM 210,000 |
3. Financial Effects of the Revised Cash Settlement
The Revised Cash Settlement is not expected to have any material impact on the net tangible asset per share or earnings per share of the Group for the financial year ending 30 June 2013.
4. Interests of Directors and Controlling Shareholders
4.1 Tan Sri Cheng Heng Jem, a Non-Executive Director of the Company, is also a controlling shareholder of the Company as well as a director of Megasteel, LCB and certain controlling shareholders of the Company. Mr Cheng Theng How, a Non-Executive Director of the Company, is also a director of Antara Steel Mills Sdn Bhd and Amsteel Mills Sdn Bhd, both of which are subsidiaries of LICB, which in turn is a controlling shareholder of the Company. Mr Lee Whay Keong, a Non-Executive Director, is also a director of Omali and AMB, and of certain subsidiaries of LCB, LDHB and LICB. Omali, AMB, LCB, LDHB and LICB are controlling shareholders of the Company.
4.2 LCB, LDHB and LICB are also parties to the Steel Investment.
4.3 Save as disclosed above, none of the Directors or controlling shareholders, has any interest, direct or indirect, in the Scheme including the Revised Cash Settlement.
BY ORDER OF THE BOARD LION ASIAPAC LIMITED
Tan Yen Hui
Company Secretary
Singapore, 16 January 2013
Scheme of Arrangement (Revised Cash Settlement) Pg 2 of 2
distributed by |