On April 30, Q&M acquired 87.97 million shares in Aoxin Q&M from Health Field Enterprises Limited (HFEL) under the share security agreement dated Oct 12, 2016. The acquisition was completed at the volume weighted average price (VWAP) of 3.21 cents per share for trades done on April 22. This forms the partial settlement of the profit guarantee amount owed by Aoxin Q&M's executive director and group CEO Dr Shao Yongxin. The share acquisition was made as HFEL and Shao did not fulfil their obligations under the profit guarantee provided by Shao in a circular in October 2016. On April 18, Q&M announced that it issued a letter of demand to Shao for sums owed under a profit guarantee agreement.
Mainboard-listed Q&M Dental says it intends to make a mandatory unconditional cash offer of 3.21 cents for the shares it does not already own in its subsidiary, Catalist-listed Aoxin Q&M (SGX:1D4
) .
This comes after Q&M increased its stake in the latter to 50.53% from 33.33%. The offer is made under Rule 14.1 of the Singapore Code on Take-overs and Mergers, where companies or persons have to make mandatory offers for shares in a company when they own "not less than 30% but not more than 50%" of the voting rights.
