Ntegrator to acquire around 27 percent of Arion for S$3M

A magazine sales display rack. Photo by Charisse Kenion on UnsplashA magazine sales display rack. Photo by Charisse Kenion on Unsplash

Ntegrator International has entered a deal to acquire 27.44 percent of Arion Entertainment Singapore from three shareholders for S$3.0 million, the regional communications network company said in a filing to SGX Wednesday. 

The company agreed to acquire a 9.93 percent stake from Ng Kai Man, a 9.48 percent stake from Chan Shui Sheung Ivy, and an 8.03 percent stake from Lee Chun Ming, the filing said.

The consideration will be paid by a cash deposit of S$1 million, with the balance paid via zero-coupon promissory notes due six months from the issuance date, Ntegrator said. The company said the latest available open market value of the sale shares was S$2.05 million, based on the volume-weighted average price on Tuesday.

Ntegrator said the deal, subject to approval at an extraordinary general meeting (EGM), was in line with its strategy of seeking diversified returns and to identify potential acquisition targets. 

Catalist-listed Arion has a publishing business in Malaysia, with magazine brands of Smart Investor, Fen and Calibre also widely circulated in Singapore, China and Malaysia in different languages; it also has publishing activity focused on the luxury watch market. Arion also has shareholder approval to diversify into the property and moneylending businesses, the filing said.

“The proposed acquisition will be a strategic long-term investment with the potential to provide the group with investment income and capital gains, new revenue streams, improve its profitability and growth profile that will enhance sustainable shareholder value,” Ntegrator said.

The deal is expected to be completed in the second quarter of this year, the filing said.

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