Z-Obee Holdings Limited *

Transcription

1 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. This announcement appears for information only and does not constitute an invitation or offer to accept, purchase or subscribe for any securities of the Company. Z-Obee Holdings Limited * (Provisional Liquidators Appointed) (incorporated in Bermuda with limited liability) (Hong Kong Stock Code: 948) (Singapore Stock Code: D5N) AMENDMENTS TO THE PROPOSED RESTRUCTURING AND ENTRY INTO THE SECOND AMENDMENT AND RESTATEMENT AGREEMENT RELATING TO THE PREVIOUS FRAMEWORK AGREEMENT Financial adviser to the Company Financial adviser to Alpha Professional SECOND AMENDMENT AND RESTATEMENT AGREEMENT On 25 July 2017, the Company, the Provisional Liquidators and Alpha Professional entered into the Second Amendment and Restatement Agreement, pursuant to which the Previous Framework Agreement was amended and restated as the New Framework Agreement and the parties agreed to, inter alia, (1) revise the structure of the capital reorganisation; (2) adjust the terms of the open offer; (3) adjust the terms of the Investor Subscription and procure Tongfang as an additional subscriber; (4) include the placing of certain Consolidated to the New Management Team; and (5) record the extension of the Exclusivity Period. WHITEWASH WAIVER Alpha Professional has procured Tongfang to invest in 20% interest in Perfect Major, a subsidiary owned as to 80% by the Company, and to subscribe for 12,711,719 Consolidated, representing approximately 5% of the issued share capital of the Company as enlarged by the issue of the Offer and the Subscription. As such, Tongfang is considered to be a party acting in concert with Alpha Professional. 1

2 As at the date of this announcement, Mr. Wang, a former Director, is deemed to be interested in a total of 153,510,250, representing approximately 20.13% issued share capital of the Company. Although Mr. Wang was not involved in the Proposed Restructuring, since (i) Mr. Wang is interested in 20% or more of the voting rights in the Company; and (ii) Tongfang is interested in 20% of the issued share capital of Perfect Major. Mr. Wang is presumed to be acting in concert with the Investor Group pursuant to note 1 to the definition of acting in concert under the Takeovers Code. As at the date of this announcement, the Investor Group does not hold, control or have directions over any, Share Options, securities that are convertible to in the Company, options, warrants or derivatives in respect of securities in the Company. Following the amendments to the Proposed Restructuring, upon completion of the Revised Open Offer and the Share Subscriptions and prior to the placing of Consolidated to the New Management Team, (i) assuming all the existing Shareholders take up their entitled Offer under the Revised Open Offer, the Investor Group and parties acting in concert with it will, in aggregate be interested in 211,591,964 Consolidated, representing approximately 83.23% of the issued share capital of the Company as enlarged by the issue of the Offer and the Subscription ; and (ii) assuming none of the existing Shareholders take up their entitled Offer under the Revised Open Offer, the Investor Group and parties acting in concert with it will, in aggregate be interested in 208,521,759 Consolidated, representing approximately 82.02% of the issued share capital of the Company as enlarged by the issue of the Offer and the Subscription, an obligation to make a mandatory general offer would therefore be triggered on the part of the Investor Group and parties acting in concert with it for all issued shares of the Company other than those already owned or agreed to be acquired by the Investor Group and parties acting in concert with it pursuant to Rule 26 of the Takeovers Code, unless the Whitewash Waiver is obtained from the Executive. Alpha Professional will make an application to the Executive under the Takeovers Code for the Whitewash Waiver to waive Alpha Professional from its obligation to make a mandatory general offer as a result of the completion of the Revised Open Offer and the Share Subscriptions, and such grant will be subject to, among other things, approval of the Independent Shareholders on the necessary resolution(s) in respect of the Share Subscriptions and the Whitewash Waiver at the SGM by way of poll. GENERAL As the Open Offer will not increase the issued share capital or the market capitalisation of the Company by more than 50% within the 12-month period immediately preceding this announcement, the Open Offer is not subject to the approval by the Shareholders pursuant to Rule 7.24(5) of the Listing Rules. The Subscription will be allotted and issued pursuant to the Specific Mandate proposed to be sought from the Independent Shareholders at the SGM. Ordinary resolution(s) will be proposed at the SGM for the Independent Shareholders to approve the Proposed Restructuring and the Whitewash Waiver. Mr. Wang, being a party presumed to be acting in concert with the Investor Group, will abstain from voting on the relevant resolution(s) in relation to the Proposed Restructuring and the Whitewash Waiver. 2

3 Under Rule 8.2 of the Takeovers Code, the Company was originally required to despatch to the Shareholders a circular containing, among other things, details relating to (A) the Previous Framework Agreement, which includes, among other things, (i) the Schemes; (ii) a capital reorganisation; (iii) an open offer; and (iv) certain share subscriptions; (B) the Whitewash Waiver; (C) the letter from the Independent Board Committee; (D) the letter from the independent financial adviser to the Independent Board Committee and the Independent Shareholders; and (E) a notice of a special general meeting within 21 days from the date of publication of the Original Announcement, that was, on or before 13 May As disclosed in the Company s announcements dated 16 May 2016, 5 October 2016, 31 March 2017 and 23 June 2017, extensions have been granted by the Executive for the despatch date of the Circular on several occasions. The Executive, by its letter to the Company dated 26 June 2017, has granted its consent to extend the latest time for despatch of the Circular to the Shareholders to no later than 15 September The Company expects to despatch the Circular on or before such date. Further announcement(s) will be made by the Company in this regard as and when appropriate. APPOINTMENT OF INDEPENDENT FINANCIAL ADVISER Altus Capital Limited, a licensed corporation to carry out Type 4 (advising on securities), Type 6 (advising on corporate finance) and Type 9 (asset management) regulated activities under the Securities and Futures Ordinance, has been appointed on 25 August 2017 as the independent financial adviser to advise the Independent Board Committee and the Independent Shareholders in respect of the Proposed Restructuring and the Whitewash Waiver. The appointment has been approved by the Independent Board Committee of the Company pursuant to Rule 2.1 of the Takeovers Code. The letter of advice from Altus Capital Limited to the Independent Board Committee and the Independent Shareholders will be included in the Circular to be despatched to the Shareholders in accordance with the Takeovers Code and the Listing Rules. PROPOSED VOLUNTARY DELISTING FROM THE SGX-ST The Company wishes to announce that it proposes to seek a voluntary delisting of the Company from the Official List of the SGX-ST. The Company has issued an announcement containing the relevant information on 29 August CONTINUED SUSPENSION OF TRADING At the request of the Company, trading in the on the Stock Exchange was suspended with effect from 2:37 p.m. on 27 June 2014 and will remain suspended until further notice. As disclosed in the Company s announcement dated 6 July 2017, on 30 June 2017, the Stock Exchange informed the Company in a letter that the Listing Committee has decided to allow the Company to proceed with the Revised Proposal subject to the fulfillment of certain conditions. 3

4 The transactions contemplated under the New Framework Agreement are subject to the fulfillment of a number of conditions precedent, and therefore may or may not materialise. The release of this announcement does not necessarily indicate that the shares of the Company will resume trading. Trading in the will remain suspended until further notice. Shareholders and potential investors of the Company should exercise caution when dealing in the. Reference is made to the announcement of the Company dated 22 April 2016 in relation to the Previous Framework Agreement, the announcements of the Company dated 1 November 2016, 3 April 2017, 4 May 2017, 6 June 2017 and 10 August 2017 in relation to the update on resumption and the announcements of the Company dated 3 March 2017 and 6 July 2017 in relation to the decision of the Listing Committee in respect of the Revised Proposal. SECOND AMENDMENT AND RESTATEMENT AGREEMENT On 25 July 2017, the Company, the Provisional Liquidators and Alpha Professional entered into the Second Amendment and Restatement Agreement, pursuant to which the Previous Framework Agreement was amended and restated as the New Framework Agreement, and the parties agreed to, inter alia, (1) revise the structure of the capital reorganisation; (2) adjust the terms of the open offer; (3) adjust the terms of the Investor Subscription and procure Tongfang as an additional subscriber; (4) include the placing of certain Consolidated to the New Management Team; and (5) record the extension of the Exclusivity Period. 1. The New Capital Reorganisation The Company proposes to make the following amendments under the New Framework Agreement: (i) the Capital Reduction will no longer be implemented; (ii) the New Share Consolidation every twenty (20) existing (instead of two (2) existing under the Previous Framework Agreement) of US$0.008 each will be consolidated into one (1) Consolidated Share of US$0.16 each (instead of one (1) share in the Company of US$0.002 each under the Previous Framework Agreement); and (iii) the Increase in Authorised Share Capital immediately after the New Share Consolidation becoming effective, the Company will increase the authorised share capital of the Company from US$10,000,000 to US$100,000,000 (instead of US$120,000,000 under the Previous Framework Agreement) by the creation of 562,500,000 new Consolidated (instead of 59,618,656,169 new shares in the Company of US$0.002 each under the Previous Framework Agreement). 4

5 The following table sets out the effect of the New Capital Reorganisation on the share capital of the Company, before and immediately after completion of the New Capital Reorganisation: Before the New Capital Reorganisation Immediately after the New Capital Reorganisation Nominal value US$0.008 US$0.16 Authorised share capital Issued and paid-up share capital US$10,000,000 divided into 1,250,000,000 US$6,101, divided into 762,687,662 US$100,000,000 divided into 625,000,000 Consolidated US$6,101, divided into 38,134,383 Consolidated As disclosed in the Company s interim report for the six months ended 30 September 2013 published on 19 December 2013, the Company had outstanding Share Options entitling the holders thereof to subscribe for a total of 9,600,000. Based on the books and records of the Group available to the Provisional Liquidators and the Board, all of the employees who held Share Options have resigned between 2012 and 2014 or their employment has otherwise terminated subsequently. Under the Share Option Scheme, the Share Options granted to such holders have lapsed accordingly and therefore none of the Share Options granted to such employees are exercisable. On 18 August 2017, the Board has resolved that all options have been lapsed automatically and are no longer exercisable due to the termination of employment of the option holders. As at the date of this announcement, the Company has no outstanding share options, warrants or other securities in issue which are convertible into or give rights to subscribe for, convert or exchange into, any or Consolidated, as the case may be. All Consolidated will rank pari passu in all respects with each other. Fractions of Consolidated that arise from the New Share Consolidation will be disregarded and will not be allocated to the Shareholders otherwise entitled thereto and will be aggregated and if reasonably practicable sold for the benefit of the Company. 2. The Revised Open Offer Under the New Framework Agreement, the Company shall conduct the Revised Open Offer on the basis of two (2) Offer for every five (5) Consolidated (instead of one (1) offer share for every one (1) share in the Company of US$0.002 each under the Previous Framework Agreement) held on the Open Offer Record Date by the Qualifying Shareholders at the Offer Price of US$0.16 per Offer Share (instead of HK$0.05 per offer share under the Proposal). China Galaxy International Securities (Hong Kong) Company Limited (instead of Alpha Professional under the Previous Framework Agreement) will underwrite the Revised Open Offer on a fully underwritten basis. The Revised Open Offer is not inter-conditional with the Share Subscriptions. 5

6 Set out below are the principal terms of the Revised Open Offer: Basis of the Revised Open Offer : Two (2) Offer for every five (5) Consolidated held on the Open Offer Record Date Number of in issue as at the date of this announcement Number of Consolidated upon completion of the New Capital Reorganisation Number of Offer to be issued : 762,687,662 : 38,134,383 Consolidated : 15,253,753 Consolidated Offer Price : US$0.16 per Offer Share Funds to be raised before expenses : US$2,440, (equivalent to approximately HK$19,036,683.74) Offer Assuming there is no change to the issued share capital of the Company from the date of this announcement up to the Open Offer Record Date (save for the New Capital Reorganisation), the 15,253,753 Offer to be allotted and issued represent: (i) approximately 2.00% of the existing issued share capital of the Company as at the date of this announcement; (ii) approximately 40.00% of the issued share capital of the Company upon completion of the New Capital Reorganisation; (iii) approximately 28.57% of the issued share capital of the Company upon completion of the New Capital Reorganisation and as enlarged by the allotment and issue of the Offer ; and (iv) approximately 6.00% of the issued share capital of the Company upon completion of the New Capital Reorganisation and as enlarged by the allotment and issue of the Offer and the Subscription. All Offer will rank pari passu in all respects with each other and with all other existing shares of the Company in issue as at the date of the allotment and issue of the Offer. Offer Price The Offer Price of US$0.16 (equivalent to approximately HK$1.248) represents: (i) a discount of approximately 70.29% to the theoretical closing price of HK$4.200 per Consolidated Share as adjusted for the effect of the New Capital Reorganisation based on the closing price of HK$0.210 per Share as quoted on the Stock Exchange on the Last Trading Day; 6

7 (ii) a discount of approximately 74.84% to the average theoretical closing price of HK$4.960 per Consolidated Share as adjusted for the effect of the New Capital Reorganisation based on the average closing price of HK$0.248 per Share as quoted on the Stock Exchange for the last five trading days up to and including the Last Trading Day; (iii) a discount of approximately 76.89% to the average theoretical closing price of HK$5.400 per Consolidated Share as adjusted for the effect of the New Capital Reorganisation based on the average closing price of HK$0.270 per Share as quoted on the Stock Exchange for the last ten trading days up to and including the Last Trading Day; and (iv) a premium of approximately % to the theoretical net asset value of the Company per Consolidated Share of approximately US$0.051 as adjusted for the effect of the New Capital Reorganisation based on the audited consolidated net assets of the Group of US$1,934,258 as at 31 March 2017 and 762,687,662 in issue as at the date of this announcement. The Offer Price has been determined having regard to the fact that (i) the Provisional Liquidators have been appointed; (ii) the prolonged suspension of trading in the on the Stock Exchange; (iii) the prevailing stock market conditions; and (iv) the prospects of the business operations of the Group. As at the date of this announcement, there are certain overseas Shareholders on the register of members of the Company. In compliance with Rule 13.36(2) of the Listing Rules, the Provisional Liquidators will make enquiries regarding the feasibility of extending the Revised Open Offer to such overseas Shareholders. Underwriting Agreement Principal terms of the Underwriting Agreement proposed to be entered into between the Company and the Underwriter are expected to be as follows: Parties : The Company The Underwriter The Underwriter and its ultimate beneficial owner(s) are independent third parties. As at the date of this announcement, the Underwriter is not interested in any. None of the Underwriter and its concert parties is acting in concert with Alpha Professional and its concert parties Number of Underwritten : The Underwriter will underwrite in full the 15,253,753 Consolidated at the Offer Price Underwriting commission : 3.0% of the aggregate Offer Price in respect of the Underwritten 7

8 Under the Underwriting Agreement, the Underwriter may, at its absolute discretion, appoint any other person to be sub-underwriter(s) for the purposes of sub-underwriting the Underwritten. Any commission, costs, fees and expenses incurred by the Underwriter in connection with any sub-underwriting arrangement shall be borne by Underwriter only. Termination of Underwriting Agreement If, prior to the Latest Time for Termination: (i) in the reasonable opinion of the Underwriter, the success of the Revised Open Offer would be materially and adversely affected by: (a) (b) the introduction of any new law or regulation or any change in existing law or regulation (or the judicial interpretation thereof) or other occurrence of any nature whatsoever which may in the reasonable opinion of the Underwriter materially and adversely affect the business or the financial or trading position or prospects of the Company as a whole or is materially adverse in the context of the Revised Open Offer; or the occurrence of any local, national or international event or change (whether or not forming part of a series of events or changes occurring or continuing before, and/or after the date hereof) of a political, military, financial, economic or other nature (whether or not ejusdem generis with any of the foregoing), or in the nature of any local, national or international outbreak or escalation of hostilities or armed conflict, or affecting local securities markets which may, in the reasonable opinion of the Underwriter materially and adversely affect the business or the financial or trading position or prospects of the Company as a whole or materially and adversely prejudice the success of the Revised Open Offer or otherwise makes it inexpedient or inadvisable to proceed with the Revised Open Offer; or (ii) any adverse change in market conditions (including without limitation, any change in fiscal or monetary policy, or foreign exchange or currency markets, suspension or material restriction or trading in securities) occurs which in the reasonable opinion of the Underwriter is likely to materially or adversely affect the success of the Revised Open Offer or otherwise makes it inexpedient or inadvisable to proceed with the Revised Open Offer; or (iii) any event of force majeure including, without limiting the generality thereof, any act of God, war, riot, public disorder, civil commotion, fire, flood, explosion, epidemic, terrorism, strike or lock-out, the Underwriter shall be entitled by notice in writing to the Company, served prior to the Latest Time for Termination, to terminate the Underwriting Agreement. In the event that the Underwriter terminates the Underwriting Agreement by notice in writing given to the Company on or before the Latest Time for Termination, the obligations of all parties under the Underwriting Agreement shall terminate forthwith and no party shall have any claim against any other party for costs, damages, compensation or otherwise save for any antecedent breaches under the Underwriting Agreement. 8

9 It is expected that the Underwriting Agreement in accordance with the above terms will be executed prior to the despatch of the Circular and further details of the Underwriting Agreement and the proposed timetable for the Revised Open Offer will be set out in the Circular. Further announcement(s) will be made when the Underwriting Agreement is executed. 3. The Share Subscriptions Pursuant to the New Framework Agreement, Alpha Professional agrees to subscribe for and the Company agrees to issue and allot to Alpha Professional, 188,134,528 Consolidated (instead of 4,040,000,000 shares in the Company of US$0.002 each under the Previous Framework Agreement) at the Subscription Price of US$0.16 per Consolidated Share (instead of HK$0.05 per share under the Previous Framework Agreement), subject to the terms and conditions of the Investor Subscription Agreement. Alpha Professional also agrees to use reasonable endeavours to procure the entry into, and consummation of, the Tongfang Subscription prior to the Resumption, and Tongfang (or one of its subsidiaries and/ or its affiliates) will subscribe for 12,711,719 Consolidated at the Subscription Price of US$0.16 per Consolidated Share. The Investor Subscription Subject to the terms and conditions of the Investor Share Subscription Agreement as entered into between the Company and Alpha Professional on 25 July 2017 and prior to Resumption, Alpha Professional will subscribe for 188,134,528 Consolidated at the Subscription Price of US$0.16 per Consolidated Share for a gross consideration of approximately US$30.1 million (equivalent to approximately HK$234.8 million). The Tongfang Subscription As disclosed in the Company s announcement dated 10 February 2017, a joint venture has been formed by Perfect Major and Resuccess Investments, a wholly-owned subsidiary of Tongfang. The joint venture is owned as to 80% and 20% by the Company and Resuccess Investments respectively. Alpha Professional has procured Tongfang to invest in 20% interest in Perfect Major and to subscribe for 12,711,719 Consolidated, representing 5% of the issued share capital of the Company as enlarged by the issue of the Offer and the Subscription. As such, Tongfang is considered to be a party acting in concert with Alpha Professional. Pursuant to the New Framework Agreement, subject to the entry into the Tongfang Share Subscription Agreement, Tongfang (or one of its subsidiaries and/or its affiliates) will subscribe for 12,711,719 Consolidated at the subscription price of US$0.16 per Consolidated Share for a gross consideration of approximately US$2.0 million (equivalent to approximately HK$15.9 million) prior to the Resumption. It is expected that the Tongfang Share Subscription Agreement in accordance with the above terms will be executed prior to the despatch of the Circular. Further announcement(s) will be made when the Tongfang Share Subscription Agreement is executed. 9

10 Condition precedent to the Share Subscriptions Completion of the Share Subscriptions is subject to the fulfilment of the following conditions precedent: (i) the requisite majority of the Independent Shareholders approving the necessary resolution(s) in respect of the Share Subscriptions, the Whitewash Waiver, the New Framework Agreement and the transactions contemplated thereunder at the SGM; (ii) the requisite majority of the Scheme Creditors in Hong Kong and Bermuda approving the relevant Schemes, each of the Hong Kong Court and the Bermuda Court sanctioning the Scheme before it and the sanction orders of the Hong Kong Court and the Bermuda Court having been duly registered and the Schemes having taken effect; (iii) the grant of the Whitewash Waiver by the Executive and the approval of the Whitewash Waiver by the Independent Shareholders; and (iv) there being no breach of any undertaking provided by the Company to Alpha Professional and Tongfang (or one of its subsidiaries and/or its affiliates) under the Investor Share Subscription Agreement and the Tongfang Share Subscription Agreement, respectively. The conditions set out above (other than conditions (i) and (iii)) may be waived by Alpha Professional and Tongfang (as applicable) by written notice to the Company and the Provisional Liquidators. The Investor Subscription and the Tongfang Subscription are not inter-conditional with each other, and the Share Subscriptions are not inter-conditional with the Revised Open Offer. Subscription Assuming there is no change to the issued share capital of the Company from the date of this announcement up to the allotment and issue of the Subscription (save for the New Capital Reorganisation and the allotment and issue of the Offer ), the 188,134,528 Consolidated from Investor Subscription, the 12,711,719 Consolidated from Tongfang Subscription and the aggregated 200,846,247 Consolidated from the Share Subscriptions to be allotted and issued represent: (i) approximately 24.67%, 1.67% and 26.33% of the existing issued share capital of the Company as at the date of this announcement respectively; (ii) approximately %, 33.33% and % of the issued share capital of the Company upon completion of the New Capital Reorganisation respectively; (iii) approximately %, 23.81% and % of the issued share capital of the Company upon completion of the New Capital Reorganisation and as enlarged by the allotment and issue of the Offer respectively; and (iv) approximately 74.00%, 5.00% and 79.00% of the issued share capital of the Company upon completion of the New Capital Reorganisation and as enlarged by the issue of the Offer and the Subscription respectively. 10

11 All Subscription will rank pari passu in all respects with each other and with all other existing shares of the Company in issue as at the date of the allotment and issue of the Offer and the Subscription. Subscription Price The subscription price of US$0.16 (equivalent to approximately HK$1.248) represents: (i) a discount of approximately 70.29% to the theoretical closing price of HK$4.200 per Consolidated Share as adjusted for the effect of the New Capital Reorganisation based on the closing price of HK$0.210 per Share as quoted on the Stock Exchange on the Last Trading Day; (ii) a discount of approximately 74.84% to the average theoretical closing price of HK$4.960 per Consolidated Share as adjusted for the effect of the New Capital Reorganisation based on the average closing price of HK$0.248 per Share as quoted on the Stock Exchange for the last five trading days up to and including the Last Trading Day; (iii) a discount of approximately 76.89% to the average theoretical closing price of HK$5.400 per Consolidated Share as adjusted for the effect of the New Capital Reorganisation based on the average closing price of HK$0.270 per Share as quoted on the Stock Exchange for the last ten trading days up to and including the Last Trading Day; and (iv) a premium of approximately % to the theoretical net asset value of the Company per Consolidated Share of approximately US$0.051 as adjusted for the effect of the New Capital Reorganisation based on the audited consolidated net assets of the Group of US$1,934,258 as at 31 March 2017 and 762,687,662 in issue as at the date of this announcement. The Subscription Price has been determined after arm s length negotiations between the Company and Alpha Professional having regard to the fact that (i) the Provisional Liquidators have been appointed; (ii) the prolonged suspension of trading in the on the Stock Exchange; (iii) the prevailing stock market conditions; and (iv) the prospects of the business operations of the Group. 4. Earnest Money Earnest money in the total amount of HK$40,000,000 is payable by Alpha Professional into the escrow account (HK$33 million have been deposited and the remaining amount of HK$7 million will be deposited upon discharge of the Provisional Liquidators) for the purposes of payment towards discharge, in whole or in part, of fees, remuneration, costs and expenses incurred or to be incurred by the Provisional Liquidators in connection with the restructuring. 11

12 5. Placing of Consolidated to the New Management Team In order to provide incentives and rewards to the New Management Team, Alpha Professional will place (either directly or through a placing agent) 10,169,414 Consolidated at a price of US$0.16 per Consolidated Share to the New Management Team, representing approximately 4.00% of the total issued share capital of the Company as enlarged by the allotment and issue of the Offer and the Subscription. As at the date of this announcement, none of the New Management Team is a Shareholder nor a party acting in concert with Alpha Professional, Tongfang and parties acting in concert with any of them. It is expected that the placing agreement in relation to the placing of Consolidated to the New Management Team will be executed prior to the despatch of the Circular and will be completed prior to Resumption. Further announcement(s) will be made when the agreement is executed. 6. The Exclusivity Period Alpha Professional has been granted the Exclusivity Period for the Proposed Restructuring which has been extended from 3 July 2017 to 31 December During the Exclusivity Period, each of the Company and the Provisional Liquidators shall not, and shall ensure that its respective partners, directors, officers, employees, advisers or agents shall not, directly or indirectly: (i) enter into or be involved in any discussion or negotiation with any person except Alpha Professional and its officers, directors, employees, advisers or agents relating to the restructuring of the Company; (ii) enter into any verbal or written commitment or agreement (whether or not legally binding on the parties) with any person except with Alpha Professional relating to the restructuring of the Company; or (iii) enter into or be involved in any transaction which has the impact of frustrating or impeding the transactions as contemplated in the New Framework Agreement. USE OF PROCEEDS FROM THE REVISED OPEN OFFER AND THE SHARE SUBSCRIPTIONS The total gross proceeds of approximately HK$269.7 million (comprising approximately HK$250.7 million and approximately HK$19.0 million to be raised from the Share Subscriptions and the Revised Open Offer respectively) will be applied as follows: (i) HK$147.0 million for the Scheme Cash Consideration to settle, among other things, (i) the costs of petitions in connection with the issuing of the winding up petition against the Company, the application for the appointment of the provisional liquidators and such appointments in Hong Kong and Bermuda, the Provisional Liquidators costs and the Scheme costs; (ii) the claims of preferential creditors (if any) of the Company; and thereafter (iii) the claims of the Scheme Creditors admitted under the Schemes; and (ii) the remaining balance of HK$122.7 million to settle, among other things, the payment for costs associated with the Proposed Restructuring; repayment of amounts outstanding under the New Working Capital Loan Agreement; and be retained as general working capital of the Group. 12

13 CHANGE IN THE SHAREHOLDING STRUCTURE OF THE COMPANY After taking into account the amendments to the Proposed Restructuring, the changes in the shareholding structure of the Company arising from the New Capital Reorganisation, the Revised Open Offer, the Share Subscriptions and the placing of the Consolidated to the New Management Team are set out in the following tables for illustrative purposes only (in each case, assuming no exercise of any Share Option). Scenario A: Assuming all the Qualifying Shareholders take up their respective entitlements to the Offer under the Revised Open Offer As at the date of this announcement Number of Approximate % Upon completion of the New Capital Reorganisation Number of Consolidated Approximate % Upon completion of the New Capital Reorganisation and the Revised Open Offer Number of Consolidated Approximate % Upon completion of the New Capital Reorganisation, the Revised Open Offer and the Share Subscriptions Number of Consolidated Approximate % Upon completion of the New Capital Reorganisation, the Revised Open Offer, the Share Subscriptions and the share placing to the New Management Team Number of Consolidated Approximate % Investor Group and parties acting in concert with it Alpha Professional 188,134, ,965, Tongfang 12,711, ,711, Mr. Wang (Notes 1 & 2) 153,510, ,675, ,745, ,745, ,745, Sub-total 153,510, ,675, ,745, ,591, ,422, Public Shareholders (other than Mr. Wang) The New Management Team 10,169, The Underwriter Other public Shareholders 609,177, ,458, ,642, ,642, ,642, Total 762,687, ,134, ,388, ,234, ,234, Public float 762,687, ,134, ,388, ,388, ,557,

14 Scenario B: Assuming none of the Qualifying Shareholders takes up its entitlement to the Offer under the Revised Open Offer As at the date of this announcement Number of Approximate % Upon completion of the New Capital Reorganisation Number of Consolidated Approximate % Upon completion of the New Capital Reorganisation and the Revised Open Offer Number of Consolidated Approximate % Upon completion of the New Capital Reorganisation, the Revised Open Offer and the Share Subscriptions Number of Consolidated Approximate % Upon completion of the New Capital Reorganisation, the Revised Open Offer, the Share Subscriptions and the share placing to the New Management Team Number of Consolidated Approximate % Investor Group and parties acting in concert with it Alpha Professional 188,134, ,965, Tongfang 12,711, ,711, Mr. Wang (Notes 1 & 2) 153,510, ,675, ,675, ,675, ,675, Sub-total 153,510, ,675, ,675, ,521, ,352, Public Shareholders (other than Mr. Wang) The New Management Team 10,169, The Underwriter 15,253, ,253, ,253, Other public Shareholders 609,177, ,458, ,458, ,458, ,458, Total 762,687, ,134, ,388, ,234, ,234, Public float 762,687, ,134, ,388, ,388, ,557, Note 1: Note 2: Since (i) Mr. Wang is interested in 20% or more of the voting rights in the Company; and (ii) Tongfang is interested in 20% or more of the voting rights of Perfect Major, he is presumed to be acting in concert with the Investor Group pursuant to note 1 to the definition of acting in concert under the Takeovers Code. Mr. Wang will not become a core connected person (as defined in the Listing Rules) of the Company upon completion of the New Capital Reorganisation, the Revised Open Offer and the Share Subscriptions. Accordingly, the held by Mr. Wang should be counted toward the public float of the Company. 14

15 REASONS FOR THE AMENDMENTS TO THE PROPOSED RESTRUCTURING As set out in the Company s announcement dated 6 July 2017, by its letter to the Company dated 30 June 2017, the Stock Exchange informed the Company that the Listing Committee has decided to allow the Company to proceed with the Revised Proposal and complete all transactions contemplated thereunder. The Second Amendment and Restatement Agreement is intended to incorporate the amendments made to the Proposed Restructuring as set out in the Revised Proposal. FUTURE INTENTION OF Alpha Professional Alpha Professional confirms that it has no intention or plan to dispose its controlling interests in the Company within 24 months after Resumption and none of the Company, the Directors (including proposed Directors), nor Alpha Professional has any intention, agreement, arrangement, negotiation and/or plan to dispose of, downsize or terminate the existing business of the Company with 24 months after the Resumption. WHITEWASH WAIVER Alpha Professional has procured Tongfang to invest in 20% interest in Perfect Major, a subsidiary owned as to 80% by the Company, and to subscribe for 12,711,719 Consolidated, representing approximately 5% of the issued share capital of the Company as enlarged by the issue of the Offer and the Subscription. As such, Tongfang is considered to be a party acting in concert with Alpha Professional. As at the date of this announcement, Mr. Wang, a former Director, is deemed to be interested in a total of 153,510,250, representing approximately 20.13% issued share capital of the Company. Since (i) Mr. Wang is interested in 20% or more of the voting rights in the Company; and (ii) Tongfang is interested in 20% of the issued share capital of Perfect Major. Mr. Wang is presumed to be acting in concert with the Investor Group pursuant to note 1 to the definition of acting in concert under the Takeovers Code. Following the amendments to the Proposed Restructuring, upon completion of the Revised Open Offer and the Share Subscriptions and prior to the placing of Consolidated to the New Management Team, (i) assuming all the existing Shareholders take up their entitled Offer under the Revised Open Offer, the Investor Group and parties acting in concert with it will, in aggregate be interested in 211,591,964 Consolidated, representing approximately 83.23% of the issued share capital of the Company as enlarged by the issue of the Offer and the Subscription ; and (ii) assuming none of the existing Shareholders take up their entitled Offer under the Revised Open Offer, the Investor Group and parties acting in concert with it will, in aggregate be interested in 208,521,759 Consolidated, representing approximately 82.02% of the issued share capital of the Company as enlarged by the issue of the Offer and the Subscription, an obligation to make a mandatory general offer would therefore be triggered on the part of the Investor Group and parties acting in concert with it for all issued shares of the Company other than those already owned or agreed to be acquired by the Investor Group and parties acting in concert with it pursuant to Rule 26 of the Takeovers Code, unless the Whitewash Waiver is obtained from the Executive. 15

16 Alpha Professional will make an application to the Executive under the Takeovers Code for the Whitewash Waiver to waive Alpha Professional from its obligation to make a mandatory general offer as a result of the completion of the Revised Open Offer and the Share Subscriptions, and such grant will be subject to, among other things, approval of the Independent Shareholders in respect of the Share Subscriptions and the Whitewash Waiver at the SGM by way of poll. As at the date of this announcement, neither the Investor Group nor parties acting in concert with it: (i) (ii) holds, controls or has direction over any outstanding options, warrants, or any securities that are convertible into or any derivatives in respect of securities in the Company, or hold any securities (as defined in Note 4 to Rule 22 of the Takeovers Code) in the Company, save as Mr. Wang s interest in 153,510,250 ; has borrowed or lent any relevant securities (as defined in Note 4 to Rule 22 of the Takeovers Code) in the Company; (iii) save for the entering into the Original Framework Agreement and the New Framework Agreement, has any arrangement referred to in Note 8 to Rule 22 of the Takeovers Code (whether by way of option, indemnity or otherwise) in relation to the relevant securities (as defined in Note 4 to Rule 22 of the Takeovers Code) of the Company or the Investor Group, which might be material to the Framework Agreement, the Revised Open Offer, the Share Subscriptions or the Whitewash Waiver, with any other persons; (iv) save for the entering into the Original Framework Agreement and the New Framework Agreement, has any agreements or arrangements to which the Investor Group or any party acting in concert with it is a party which relates to circumstances in which it may or may not invoke or seek to invoke a pre-condition or a condition to the Framework Agreement, the Revised Open Offer, the Share Subscriptions or Whitewash Waiver; and (v) has received any irrevocable commitment to vote for or against the Framework Agreement, the Revised Open Offer, the Share Subscriptions or the Whitewash Waiver. Save for entering into the Original Framework Agreement and the New Framework Agreement, neither the Investor Group nor parties acting in concert with it has dealt in the shares of the Company, outstanding options, derivatives, warrants or other securities convertible into any shares of the Company during the six-month period prior to 5 June 2015, being the date when the Original Framework Agreement was entered into. After the appointment of the Provisional Liquidators in June 2014, the Provisional Liquidators have notified the share registrars of the Company in relation to their appointment and informed the share registrars of the Company that no transfer or removal of any shares of the Company is allowed without prior written consent of the Provisional Liquidators. Therefore, it is to the understanding of the Provisional Liquidators that Mr. Wang has not dealt in the shares of the Company during the said period. 16

17 GENERAL As the Open Offer will not increase the issued share capital or the market capitalisation of the Company by more than 50% within the 12-month period immediately preceding this announcement, the Open Offer is not subject to the approval by the Shareholders pursuant to Rule 7.24(5) of the Listing Rules. The Subscription will be allotted and issued pursuant to the Specific Mandate proposed to be sought from the Independent Shareholders at the SGM. Ordinary resolution(s) will be proposed at the SGM for the Independent Shareholders to approve the Proposed Restructuring and the Whitewash Waiver. Mr. Wang, being a party presumed to be acting in concert with the Investor Group, will abstain from voting on the relevant resolution(s) in relation to the Proposed Restructuring and the Whitewash Waiver. Under Rule 8.2 of the Takeovers Code, the Company was originally required to despatch to Shareholders a circular containing, among other things, details relating to (A) the Previous Framework Agreement, which includes, among other things, (i) the Schemes; (ii) a capital reorganisation; (iii) an open offer; and (iv) certain share subscriptions; (B) the Whitewash Waiver; (C) the letter from the Independent Board Committee; (D) the letter from the independent financial adviser to the Independent Board Committee and the Independent Shareholders; and (E) a notice of a special general meeting within 21 days from the date of publication of the Original Announcement, that was, on or before 13 May As disclosed in the Company s announcements dated 16 May 2016, 5 October 2016, 31 March 2017 and 23 June 2017, extensions have been granted by the Executive for the despatch date of the Circular on several occasions. The Executive, by its letter to the Company dated 26 June 2017, has granted its consent to extend the latest time for despatch of the Circular to the Shareholders to no later than 15 September The Company expects to despatch the Circular on or before such date. Further announcement(s) will be made by the Company in this regard as and when appropriate. APPOINTMENT OF INDEPENDENT FINANCIAL ADVISER Altus Capital Limited, a licensed corporation to carry out Type 4 (advising on securities), Type 6 (advising on corporate finance) and Type 9 (asset management) regulated activities under the Securities and Futures Ordinance, has been appointed on 25 August 2017 as the independent financial adviser to advise the Independent Board Committee and the Independent Shareholders in respect of the Proposed Restructuring and the Whitewash Waiver. The appointment has been approved by the Independent Board Committee of the Company pursuant to Rule 2.1 of the Takeovers Code. The letter of advice from Altus Capital Limited to the Independent Board Committee and the Independent Shareholders will be included in the Circular to be despatched to the Shareholders in accordance with the Takeovers Code and the Listing Rules. PROPOSED VOLUNTARY DELISTING FROM THE SGX-ST The Company wishes to announce that it proposes to seek a voluntary delisting of the Company from the Official List of the SGX-ST. The Company has issued an announcement containing the relevant information on 29 August

18 CONTINUED SUSPENSION OF TRADING At the request of the Company, trading in the on the Stock Exchange was suspended with effect from 2:37 p.m. on 27 June 2014 and will remain suspended until further notice. As disclosed in the Company s announcement dated 6 July 2017, on 30 June 2017, the Stock Exchange informed the Company in a letter that the Listing Committee has decided to allow the Company to proceed with Revised Proposal subject to the fulfillment of certain conditions. The transactions contemplated under the New Framework Agreement are subject to the fulfillment of a number of conditions precedent, and therefore may or may not materialise. The release of this announcement does not necessarily indicate that the shares in the Company will resume trading. Trading in the will remain suspended until further notice. Shareholders and potential investors of the Company should exercise caution when dealing in the. DEFINITIONS In this announcement, unless the context otherwise requires, the following terms shall have the following meanings: acting in concert Alpha Professional Bermuda Court Bermuda Provisional Liquidators Board BVI Capital Reduction CDP Circular has the meaning ascribed thereto under the Takeovers Code Alpha Professional Development Limited, a company incorporated in the BVI and which is wholly and beneficially owned by Mr. Xiong and Mr. Yi as to 50% and 50%, respectively The Supreme Court of Bermuda Messrs. Donald Edward Osborn, Yat Kit Jong and Man Chun So, all of PricewaterhouseCoopers who have been appointed jointly as provisional liquidators of the Company pursuant to the order dated 17 February 2017 made by the Bermuda Court the board of Directors the British Virgin Islands the reduction of the nominal value of each Share from US$0.008 to US$0.001 as described in the Original Announcement The Central Depository (Pte) Limited in Singapore a circular required to be despatched by the Company pursuant to Rule 8.2 of the Takeovers Code containing, among other things, details of (a) the New Framework Agreement, which includes, among other things, details relating to (i) the Schemes; (ii) the New Capital Reorganisation; (iii) the Revised Open Offer; and (iv) the Share Subscriptions; (b) the Whitewash Waiver; (c) the letter from the Independent Board Committee; (d) the letter from the independent financial adviser to the Independent Shareholders and the Independent Board Committee; and (e) a notice of the SGM to be despatched by the Company 18

19 Companies Ordinance Companies Act Company Completion concert parties Consolidated Delisting Director(s) the Companies Ordinance (Chapter 622 of the Laws of Hong Kong) as amended from time to time the Companies Act 1981 of Bermuda as amended from time to time Z-Obee Holdings Limited (Provisional Liquidators Appointed), a company incorporated in Bermuda with limited liability, shares of which are listed on the Stock Exchange and Singapore Exchange Limited the completion of the New Capital Reorganisation, the Revised Open Offer and the Share Subscriptions the parties acting in concert within the meaning of the Takeovers Code the ordinary share(s) of US$0.16 in the share capital of the Company immediately after the New Share Consolidation the delisting of the Company s shares on the SGX-ST the director(s) of the Company Exclusivity Period the period of 24-months originally from and inclusive of 3 July 2015, now until 31 December 2017 (or such other date as the parties may otherwise agree in writing) as recorded by the Second Amendment and Restatement Agreement Executive First Amendment and Restatement Agreement Group HK Rich HK$ Hong Kong Hong Kong Court the Executive Director of the Corporate Finance Division of the Securities and Futures Commission of Hong Kong or his delegate the amendment and restatement agreement in relation to the Original Framework Agreement entered into among the Company, the Provisional Liquidators and Alpha Professional on 5 October 2015 the Company and its subsidiaries H K Rich Technology International Company Limited, a company incorporated in Hong Kong with limited liability, which is a whollyowned subsidiary of the Company Hong Kong dollar(s), the lawful currency of Hong Kong the Hong Kong Special Administrative Region of the PRC the High Court of Hong Kong 19

20 Hong Kong Provisional Liquidators Increase in Authorised Share Capital Independent Board Committee Independent Shareholders Investor Group Investor Share Subscription Agreement Messrs. Donald Edward Osborn, Yat Kit Jong and Man Chun So, all of PricewaterhouseCoopers who had been appointed jointly and severally as provisional liquidators of the Company pursuant to the orders dated 27 June 2014 and 2 June 2015 made by the Hong Kong Court and subsequently discharged pursuant to the order dated 27 March 2017 made by the Hong Kong Court the proposed increase in the share capital of the Company from US$10,000,000 divided into 62,500,000 Consolidated to US$100,000,000 divided into 625,000,000 Consolidated by the creation of an additional 562,500,000 Consolidated in the share capital of the Company upon completion of the New Capital Reorganisation a committee of the Board comprising Mr. Liu Jintao and Mr. Tsang Hin Fun Anthony, being the independent non-executive Directors, to advise the Independent Shareholders on the Proposed Restructuring and the Whitewash Waiver Shareholders other than Mr. Wang and those who are involved in or interested in the Proposed Restructuring and the Whitewash Waiver Alpha Professional and Tongfang the subscription agreement dated 25 July 2017 entered into between, among others, the Company and Alpha Professional pursuant to which Alpha Professional will subscribe for 188,134,528 Consolidated Investor Subscription the subscription by Alpha Professional to subscribe for 188,134,528 Consolidated Last Trading Day Latest Time for Termination Listing Committee Listing Manual Listing Rules Loan Facility 26 June 2014, being the last full trading day immediately before the suspension of trading in the 5:00 p.m. on the first Business day following the acceptance date or such later date (if any) as the Underwriters may agree in writing with the Company as the last date for acceptance of, and payment of, Offer the Listing Committee of the Stock Exchange SGX-ST listing rules for issuers the Rules Governing the Listing of Securities on the Stock Exchange an interest-free unsecured loan of not more than HK$3.0 million to be made available by Alpha Professional to the Company pursuant to the terms of the loan facility agreement dated 5 June 2015 entered into between the Company and Alpha Professional 20