Chaswood Resources proposes US$500M reverse takeover of HK Aerospace Beidou New Energy

U.S. one-dollar currency notes; taken September 2018.U.S. one-dollar currency notes; taken September 2018.

Chaswood Resources has entered a binding term sheet for a proposed US$500 million reverse takeover of HK Aerospace Beidou New Energy Technology (HKAB), the company said in a filing to SGX Wednesday.

The consideration will be paid via the issue of new shares at US$0.028 each, for an estimated issuance of 17.86 billion new shares, the filing said.

“To rebuild shareholder value, the company has been seeking an appropriate business to be injected into the group. The company is of the view that the proposed acquisition will place the company in a position to expand into new business areas and grow revenues, both of which will help rebuild shareholder value,” Chaswood said in the statement.

“The company is to keep the existing restaurant business notwithstanding the proposed acquisition and plans to develop a new kiosk model which is much more efficient and scalable to cater for the current market trend which is by delivery. The company will continue to explore this as a driver to enhance the existing restaurant business,” the company added.

HKAB will be acquired from Techna-X, which holds 50 percent, Wan Muhamad Hasni bin Wan Sulaiman, who holds 25 percent, Nong You Hua, who holds 15 percent, and Satriya bin Suetoh, who holds 10 percent, the filing said.

HKAB is a substantially owned subsidiary of Malaysia-listed Techna-X, which uses rate metal Ruthenium base in its ultra-capacitor and has a patent field and strategy in ruthenium ultra-capacitor technology for developing its own proprietary systems, the filing said.

HKAB owns the intellectual property, global marketing and distribution rights of the ultra-capacitor to a range of industries for energy storage and Ruthenium super batteries, the filing said.

Datuk Lim Chih Li @ Lin Zhili, Jared, an executive director of Techna-X and a controlling shareholder of Chaswood Resources introduced the target to Chaswood, the filing said.

Chaswood has previously disposed of certain subsidiaries which own TGI Friday’s in Malaysia, Beijing and Teh Tarik Place businesses to Techna-X, previously known as Sino Hua-An International, in 2019, the filing said.