Dear readers,
ISOTeam has just announced the proposed acquisition of TMG Projects for S$4 million after market closed this evening. The purchase consideration of S$4.0m will be paid in the following manner
a) S$2.4m will be paid to the Vendors in cash;
b) S$1.6m will be satisfied through the transfer of 2,539,683 ISOTeam’s treasury shares (“Consideration Shares”) at a transfer price of S$0.63 for each Consideration Share.
This transaction, by itself, does not come as a surprise as it is in line with ISOTeam’s intention to provide a total maintenance solution to clients. Furthermore, it enhances and complements their own interior decoration competencies. It also provides an opportunity to enter into other industries such as shopping malls, REITs, schools, hospitals, high-end hotels and residences etc.
However, what catches my attention is the payment of approximately 2.5m ISOTeam treasury shares priced at $0.630. It ...
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