TEE International enters deal to sell up to 28 percent of TEE Land

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TEE International said on Monday it entered a term sheet, or nonbinding agreement, to sell up to 125.13 million shares of TEE Land, or an up to around 28.0 percent stake, to Top Capital Securities at S$0.179 to S$0.201 a share.

TEE Land’s shares surged after the trading halt requested earlier Monday was lifted, with the stock up 16.20 percent at S$0.17 at 4:31 P.M. SGT. TEE International’s shares were flat at S$0.10.

Top Capital has been given an exclusivity period of two months, with the sales completion conditional on a definitive agreement and due diligence, targeted to be completed by end-April, it said in a filing to SGX during market hours on Monday.

The price range was based on an attributed net asset value of S$80 million to S$90 million for TEE Land, or a 39.2 percent to 46.0 percent discount to its unaudited net asset value as of end-November, respectively, it said.

“Shareholders are advised to exercise caution in trading their shares in the company and TEE Land as there is no certainty or assurance that definitive agreements will be entered into or the transaction will be consummated,” TEE International said.

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