SINGAPORE (Mar 25): New Silkroutes Group has sold its entire stake in its oil trading division International Energy Group (IEG) to TK Energy for US$10 million ($13.5 million) in cash.
TK Energy is a private limited company incorporated in Hong Kong formed by stakeholders with interests in the oil and gas sector.
The disposal is expected to result in a gain of approximately US$10 million for the group. Thereafter, IEG will cease to be a subsidiary of the company and New Silkroutes will become a full-fledged healthcare group.
Dr Goh Jin Hian, New Silkroutes’ CEO, says: “The sale will provide the group with the funds to expand its healthcare business locally and regionally, through a mix of acquisitions, collaborations, and organic growth.”
In connection with the sale, TK Energy will make available to New Silkroutes a loan of US$10 million, which will be deemed repaid in full when the disposal is completed. TK Energy will also make available to IEG, credit facilities of up to US$250 million of which an initial loan of US$50 million will be advanced to IEG, which will be capitalised as shares in the latter upon completion of the sale and purchase agreement.
Shares in New Silkroutes last traded at 25 cents on Friday.
