@ Trendlines' office in Israel: Co-Chairman Steve Rhodes explains the business to Singapore analysts and investors. NextInsight file photo.The Trendlines Group is on the verge of reporting its first exit from a portfolio company since its listing in Singapore in Nov 2015.
Its 26.46%-owned associated company, E.T.View Medical, is in an advanced stage of negotiations with an international company with the intention to sign a definitive agreement as soon as possible, to sell ETView to the potential buyer.
| ♦ Net proceeds of US$3.3 million |
| The fair value of Trendlines' holdings in ETView was approximately US$1.3 million as at 31 March 2016. Should the proposed sale be concluded, Trendlines is expected to receive net proceeds of approximately US$3.3 million and a gain from the proposed sale of approximately US$2 million before tax. |
According to ETView's report to the Tel Aviv Stock Exchange where it is listed, the consideration for the proposed sale will be US$16 million (including the assumption of certain debts and liabilities and expenses of ETView, transaction costs, and employee bonuses, all of which are estimated at approximately US$3.4 million).
The proposed sale is based on a structure of a “reverse triangular merger” which will result in the delisting of ETView from TASE.
| Trendlines Group | |
| Share price: 18 c Source: DBS Vickers |
Target: 28 c |
The proposed sale is contingent upon certain conditions precedent including the execution of the definitive agreement(s), completion of due diligence by the potential buyer and obtaining necessary approvals from ETView’s board of directors, holders of tradable options and shareholders.
