GRP Limited (SGX:BLU) entered into a sale and purchase agreement to acquire Starland Axis Pte. Ltd. and Xiamen Starland Trading Limited from Starland Holdings Limited (Catalist:5UA) for approximately CNY 180 million in cash on September 23, 2016. As per the terms of the agreement, the consideration shall be fully satisfied by GRP Limited by setting off from the amount due to GRP Limited from Starland Holdings. In the event the consideration is higher than the amount due to GRP from Starland Holdings, GRP shall pay any balance consideration. GRP will be financing the balance consideration through the proceeds arising from the proposed rights cum warrants issue announced by GRP on May 24, 2016, and bank borrowings. On June 20, 2016, a conditional sale and purchase agreement was entered to acquire equity interest in Ayondo Holding. Ayondo deal is subject to Starland Holdings entering into an agreement to dispose of all its assets to GRP.

As of June 30, 2016, Starland Axis Pte. Ltd. and Starland Commercial Trading reported net assets of CNY 179.4 million. There are no directors proposed to be appointed to Starland in connection with the transaction. The deal is subject to and conditional upon Starland Holdings effecting a distribution of all its cash and cash equivalents in Starland Holdings to its shareholders on completion, approval of the shareholders of Starland Holdings, approval of the shareholders of GRP Limited, approval of bankers, financial institutions, landlord of leases, relevant third parties, government, statutory or regulatory authorities in Singapore and the receipt of an opinion from an independent financial adviser. Completion shall take place on the business day falling 7 days after the fulfilment of the conditions precedent and shall be no later than 12 months from the date of the sale and purchase agreement. The deal is expected to contribute positively to the EPS of Starland Holdings.