LONDON, UK: Jade Road Investments Limited (AIM: JADE), an investment company focused on Asia, has announced a plan to transfer its legacy Asian assets to a new entity, Eastern Champion Ltd (SPV). The legacy assets include investments in mining, energy, healthcare, and real estate sectors.
The transfer will be done through a conditional agreement, which requires the approval of both shareholders and loan note holders. The company has secured the support of the majority of both groups, as well as the consent of the loan note holders to extend the maturity date of their loan notes to 30 June 2024.
The transfer will also involve a dividend distribution of the SPV shares to the existing shareholders of the company, allowing them to retain their economic interest in the legacy assets. The SPV will be managed by an independent board of directors and an independent investment manager.
The company said the transfer will enable it to deconsolidate its legacy assets and focus on its core strategy of investing in high-growth Asian businesses. The transfer is subject to shareholder approval at a general meeting to be held in due course.
John Croft, Executive Chairman commented: “The pace and intricacy of extracting proper value from the Legacy Assets has acted as a serious inhibitor to the Company’s ability to grow and raise new capital. The transfer of its Legacy Assets to a separate and fully independent company will enable JADE to present itself as a clean investment platform which can invest in new assets in line with its investment policy of seeking opportunities with the best risk-adjusted returns globally. I look forward to providing further updates on our plans in due course.”
Completion of the disposal of Legacy Assets
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