Hi-P International Limited (SGX:H17) signed a conditional sale and purchase agreement to acquire South East Asia Moulding Company Pte. Ltd. from a group of sellers for approximately $31 million on October 8, 2019. Hi-P International Limited will acquire 0.25 million shares. The consideration includes $27.9 million to be paid in cash on completion and $3.1 million to be paid in cash on the date falling 12 months from the completion date. The consideration is $31 million minus any amount by which the net assets value of South East Asia Moulding Company (UK) Pte. Ltd. as at the completion date falls short of $7.47 million (“shortfall”). Any shortfall will be set-off against the deferred payment. Hi-P International Limited intends to finance the consideration through internal resources. Upon completion, South East Asia Moulding Company Pte. Ltd. will become a wholly-owned subsidiary of Hi-P International Limited. For the year ended November 30, 2018, South East Asia Moulding Company Pte. Ltd. reported net profits of $7.1 million. The transaction is subject to approval of any relevant authorities and third parties having been obtained for the transactions contemplated under the agreement, three key management personnel of South East Asia Moulding Company Pte. Ltd., namely Garry Annand, David Powell and Kris Owyong having each entered into a service agreement with and on terms satisfactory to Hi-P International Limited, affiliated companies of the vendors having entered into an exclusive supply agreement with South East Asia Moulding Company Pte. Ltd. in relation to the exclusive supply of certain products and services by such affiliated companies to South East Asia Moulding Company Pte. Ltd., on terms to be mutually agreed by the parties thereto and acceptable to Hi-P International Limited, license to South East Asia Moulding Company Pte. Ltd. of the right to the use of certain management software, free of license fee or other charges, on terms acceptable to Hi-P International Limited, no government, court or regulatory body having taken or threatened to take any action and no law having been proposed or enacted which will restrain or otherwise prohibit the transactions contemplated under the agreement, none of the vendors having committed any material breach of its obligations, representations and undertakings under the agreement, vendors’ representations and warranties being true and accurate in all material respects and not misleading by reference the facts and circumstances then existing and no material adverse change having occurred in relation to South East Asia Moulding Company Pte. Ltd. Ernst & Young Corporate Finance Pte Ltd. acted as financial advisor to Hi-P International Limited (SGX:H17). Hi-P International Limited (SGX:H17) completed the acquisition of South East Asia Moulding Company Pte. Ltd. from a group of sellers on October 31, 2019.