Foods deal for Ninety
Article Date: Sep 05 2008Hong Kong financier Ray Ang Wee Boon is acquiring AIM investment shell Ninety through a £20 million paper reverse takeover.
Under the proposed deal, Ninety, steered by executive director John McLean, will issue shares to buy Honour Field, Ray Ang Wee Boon’s British Virgin Islands-based investment company. In April, Honour Field agreed to buy LVST, based in China’s Shandong Province, which produces food preservatives sorbic acid and potassium sorbate and followed £3.4 million pre-tax profit on £12.9 million turnover last year with first-half pre-tax profits of £2.3 million (£1.9 million after tax) on £7.4 million turnover.
Ninety, which plans to change its name to Sorbic International, intends to pay nearly half the shares now and the rest if Honour Field/LVST makes at least £4.38 million after tax for the whole of this year. The deal is to be accompanied by a one-for-60 share consolidation and £240,000 placing at 75p for Ninety, whose shares now stand at 1.25p.
If it all goes through, McClean will stay on the transformed company’s board. LVST’s founder and boss, Wang Yan Tin, will be president and Ray Ang Wee Boon chief executive officer.
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