Somerley Capital Holdings Ltd. completed the acquisition of a majority stake in Hong Kong-based investment management company Environmental Investment Services Asia Ltd., or EISAL.
EISAL manages the Green Dragon Fund, which invests in companies with significant exposure to low-carbon environmental sector in the Asia-Pacific region.
Somerley subscribed for 900,000 new EISAL shares at 60 U.S. cents apiece, or US$540,000. The shares represent an approximately 27.2% stake in EISAL. The new shares are in addition to the 240,000 shares of EISAL, or a 9.97% stake, that Somerley bought in July for US$144,000.
In addition, Somerley acquired 1,333,334 existing shares from EISAL shareholders at a consideration of 60 cents per share. The company offered 30 cents in cash and 1.14 new Somerley shares to EISAL shareholders. The offer was satisfied by paying US$400,000 and the issue of 1,516,000 new Somerley shares.
Following the completion of the share acquisition, Somerley holds 2,473,334 EISAL shares, or 74.8% of the share capital of the company.
The company said the acquisition allows it to extend its activities into asset management and complements its IPO activities and equity capital market objectives. As a result of the completion, Jeremy James Higgs resigned as an independent nonexecutive director, effective Dec. 14.