27 Apr 2016
Exit by the Gallant Group of its investment in the Lao Xi Men Project, Shanghai
Serene Yeo, Cheng Yoke Ping and Koh Choon Yee from the Capital Markets / Mergers and Acquisitions Practice Group are acting for Gallant Venture Ltd (“GV” and together with its subsidiaries, the “GV Group”) in relation to the GV Group's exit of its investment in the Lao Xi Men Project, pursuant to which the GV Group will receive proceeds of an aggregate of US$330 million.
In connection therewith, GV has entered into an agreement (“Agreement”) with Universal Global Invest Limited (“Universal Global”) and Market Strength Limited (“Market Strength”), relating to, inter alia, the disposal by GV of its entire holding of 202,500,000 warrants issued by Market Strength to Universal Global.
Pursuant to the terms of the Agreement, the US$202.5 million principal amount of notes issued by Market Strength (“Notes”) which are held by PT Batamindo Investment Cakrawala, a subsidiary of GV, will be redeemed ahead of the maturity date of the Notes in February 2018.
Market Strength has an effective interest of approximately 47.7% in Shanghai Wanye Enterprises Lao Xi Men Real Estate Development Co., Ltd which owns the property development project located in Lao Xi Men, Shanghai, PRC.