Chaswood Resources, fresh from calling off its US$1 billion RTO deal with 3DOM Inc, has signed a US$500 million ($678.6 million) deal one week later instead with a business linked to one its controlling shareholder Jared Lim.
Under terms of a binding term sheet signed on Nov 24, Chaswood Resources will acquire a Hong Kong based company called HK Aerospace Beidou New Energy Technology Co (HKAB), whose largest shareholder is Techna-X, a Bursa-listed company.
Chaswood Resources plans to pay for the US$500 million acquisition by issuing some 17.86 billion new shares at 2.8 US cents each.
Thus far, the target company has yet to provide detailed financial information to Chaswood Resources. An independent valuer will be appointed to ascertain the value of the target company, according to Chaswood Resources’ statement, signed off by managing director Andrew Reddy.
According to Chaswood Resources, Techna-X now holds a 50% stake in HKBA, which, translates to US$250 million based on the US$500 million figure tacked to the RTO agreement.
Using the Nov 24 closing price of 10 sen, Techna-X as a whole has a market value of around RM190 million.
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Techna-X used to be called Sino Hua-An International, which in 2019 bought certain businesses from Chaswood Resources, such as the TGI Friday’s in Malaysia, Beijing and Teh Tarik Place.
Chaswood Resources, in its announcement, notes that HKAB is the first and only company in the world to use “rare metal Ruthenium base in its ultra-capacitor as well as a complete patent field and strategy in ruthenium ultra-capacitor technology to develop its own proprietary systems.”
HKAB owns the “intellectual property, global marketing and distribution rights of the ultra-capacitor technology to a range of industries for energy storage and Ruthenium Super Batteries.
“Its manufacturing operations are in China and undertakes further research and development in international collaborations related to the ultra-capacitor technology,” adds Chaswood Resources.
Other than Techna-X’s 50% stake, the other shareholders of HKBA are Dr Wan Muhammad Hasni Bin Wan Sulaiman (25%), Nong You Hua (15%) and Satriya Bin Suetoh (10%).
Chaswood Resources describes Techna-X’s main business as providing “intelligent digital ecosystem and energy storage solutions with its core technologies include mobile data, IOT, digital infrastructure, deep analytics, business intelligence, super batteries and ultra-capacitor technology with a joint venture to develop low-voltage electric mobility systems.”
“It has an internal digital ecosystem of players that provides the core technologies that are most required by the modern market and are also in food and beverage business which is also driven by technology,” the company adds.
Jared Lim, the controlling shareholder of Chaswood Resources, holds a 0.09% stake in Techna-X, where he is an executive director.
Lim, according to Chaswood Resources, was the introducer of the target, although he will not be drawing an introducer’s fee from the company for making this deal.
Chaswood Resources shares are currently suspended.
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On Nov 15, Chaswood Resources terminated an RTO deal with 3DOM Inc of Japan which will see it transform into a lithium-ion battery maker.
3DOM Inc inked an RTO deal with Reenova Investments instead on Nov 17.
Photo: Reddy and Lim in a 2015 file photo / The Edge Singapore
