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View Full Version : Acquisition of Prime Freehold Property – Terrace House At Cairnhill Circle



joe
04-07-07, 21:40
The Board of Directors of TEE International Limited (the "Company") is pleased to announce that an offer made by its wholly owned subsidiary, TEE Development Pte Ltd (the "Purchaser") for the purchase of the property at 51 Cairnhill Circle Singapore, has been accepted and the purchaser has also exercised the option for 57 and 59 Cairnhill Circle, Singapore.

The purchase price is S$5,500,000 only and in accordance with the terms of purchase, an option money amounting to S$55,000 ("option money") has been paid and a further 4 percent of the purchase price (less the option money) amounting to S$220,000 would be paid by 6 July 2007 to the solicitor for the owner as stakeholders, pending completion of the purchase.

This purchase is schedule to complete on the 25 September 2007 with 2 months rent free period or until 28 October 2007. The sale and purchase of the property is subject to obtaining the written approval of the Controller of Housing and/or other relevant authorities for the issuance of a Qualifying Certificate.

This Acquisition allows Management to align the Group's strategy and business plan in expanding its existing core business of construction works. It also complements with the Group's existing core business. The Group has formed the wholly owned subsidiary, TEE Development Pte Ltd to focus on acquisition and development of properties. The construction work will be undertaken by another wholly owned subsidiary of the Group, PBT Engineering Pte Ltd.

This purchase will be financed by the Company's internal funds and bank borrowings and is not expected to have any material impact on the consolidated earnings and net tangible assets per share of the Company for the current financial year.

The relative figures computed on the bases pursuant to Rule 1006 (a) to (d) of the Listing Manual based on the latest announced consolidated accounts of the Group for the financial year ended 30 November 2006 are as follows:

(a) Net asset value of the assets to be disposed of, compared with group's net asset value - N.A.
(b) The net profits attributable to the assets acquired or disposed of, compared with the group's net profits - N.A.
( c) The aggregate value of the consideration given or received, compared with the issuer's market capitalization - 19%
(d) The number of equity securities issued by the issuer as consideration for an acquisition, compared with the number of equity securities previously in issue - N.A.

Pursuant to Rule 3.2 of Practice Note 10.1 of the Listing Manual, shareholders' approval of the Company is not required as the Acquisition will result in an expansion of the Group's existing core business. The Acquisition is in the Group's ordinary course of business and is not to be regarded as a "major transaction" for the purpose of Chapter 10 of the Listing Manual.

To the best of the Company's knowledge, none of the Directors or the controlling shareholders of the Company has any interest, direct or indirect in the Transaction.