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aspial on the way to privatize maxi cash liked what he did with lee hua after its ipo in the 1990 underwriteened by oub
Aspial to consolidate local retail jewellery units under subsidiary Maxi-Cash in S$100m deal
FRI, JUL 08, 2022 - 8:55 AM
ELYSIA TANelysiat@sph.com.sg@ElysiaTanBT
maxi-cash.jpg
After the move, Maxi-Cash will be renamed Aspial Lifestyle, to reflect its expanded consumer lifestyle-related business. PHOTO: SPH MEDIA TRUST
MAINBOARD-LISTED Aspial : A30 0% plans to sell a group of its wholly-owned subsidiaries to another of its subsidiaries, Maxi-Cash Financial Services : 5UF +3.09%, for up to S$99.8 million, Aspial and Maxi-Cash said in a joint press release on Thursday (Jul 7).

The transaction, which will transfer ownership of all the issued ordinary shares in the capital of Aspial-Lee Hwa Jewellery Singapore, Gold Purple and BU2 Services to Maxi-Cash for a base consideration of S$87.8 million, is meant to consolidate Aspial’s jewellery brands.

With a 62.56 per cent stake, Aspial is the controlling shareholder of Catalist-listed Maxi-Cash. The deal will require the approval of shareholders of both companies to proceed.


Maxi-Cash plans to finance the deal with a combination of cash, settlement of debt and the issuance of new shares. For the S$87.8 million base consideration, it will issue approximately 311.7 million new shares worth a total of S$50.8 million, at S$0.163 each. This will bring Aspial’s stake in Maxi-Cash up to 71.78 per cent.

Based on the issue price, the aggregate of the total number of base consideration shares and the maximum number of earn-out consideration shares to be issued is approximately 348.5 million Maxi-Cash shares, which represents approximately 24.62 per cent of the issued share capital of Maxi-Cash, the companies said.

After the move, Maxi-Cash, which currently operates in pawn-broking, money lending and the sale and trading of pre-owned jewellery and branded merchandise, will be renamed Aspial Lifestyle, to reflect its expanded consumer lifestyle-related business. The new entity will include the Lee Hwa Jewellery and Goldheart jewellery retail chains.

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