Ms. Floria Lin reports
SPACKMAN EQUITIES GROUP SELLS BACK ITS STAKE IN CHINA DISPLAY COMPANY
Spackman Equities Group Inc. has entered into a share sale and purchase agreement to sell all 1,791,667 shares, or 17.916 per cent, of its ownership in Intech LCD Group Ltd., a Chinese developer and manufacturer of flat-panel displays and modules, back to Trinity Capital Advisors Ltd. for a total purchase consideration of $1,075,000.20. Of this total purchase consideration, $775,000.20 will be paid in cash and $300,000.00 will be paid in a two-year interest-bearing (6-per-cent-per-annum) promissory note issued by the purchaser to SEGI. The total purchase consideration of $1,075,000.20 is equivalent to the consideration SEGI originally paid for these same 1,791,667 shares of Intech from Trinity on Oct. 31, 2011.
Originally, SEGI invested in Intech last year with the intent to acquire a majority of Intech in the future; however, the management of SEGI recently decided not to pursue a majority acquisition of Intech due to its evolving investment strategy to focus on the development of its entertainment businesses, investments in public equities and other new opportunities. The deal to sell back the Intech shares was reached amicably, and both SEGI and the management of Intech agreed that this was the optimal path for both parties given SEGI's intent to not pursue a majority acquisition of Intech.
According to the share sale and purchase agreement between SEGI and Trinity, the completion of this transaction is to take place on or before Dec. 31, 2012.