Tengri Petrochemicals holds mining licences issued to mine coal deposits in Bayan sourm, Tuv province in Mongolia, while Tsaidam Energy holds licences to construct power plants and energy facilities in the country.QTV's board of directors said the RTO will give the company"a new lease of life" and could potentially increase its market capitalisation.
However, the target group's financial statements have not taken into account the actual valuation of TCE's assets, which will be based on an independent valuation to be commissioned and completed before the EGM, QTV said. In addition, the independent valuation will consider the 25-year off-take agreements for all of the 600MW of generated power from the coal-fired plant. Half of this power will go to the Mongolian government, while the other half will be used for an industrial minerals processing project owned by TCE's seller, subject to compliance with the requirements for interested-person transactions.
QTV will fork out a cash deposit, and the balance will be paid by issuing new shares to the seller. For illustrative purposes, assuming the deposit is zero, the purchase price will be fully paid by issuing some 186.27 billion new shares in QTV at about 0.537 Singapore cent apiece. Holders of QTV shares before the completion of the proposed acquisition are entitled to net proceeds of corporate actions, as well as future proceeds arising from the disposal of its drug-coated peripheral product line Chocolate Touch, which may include royalty payments of up to US$16.1 million, and/or future sales proceeds from selling the Chocolate Touch asset to G Vascular. QTV announced last month that it was in the process of selling the product line to G Vascular for up to S$20 million.