Aj Pte Ltd signed a legally binding term sheet to acquire 93.09% stake in Biofuel Research Pte. Ltd. from USP Group Limited (SGX:BRS) and USP Industrial Pte. Ltd for SGD 5.6 million on May 11, 2020. Aj Jetting Pte Ltd signed a conditional sale and purchase agreement to acquire 93.09% stake in Biofuel Research Pte. Ltd. from USP Group Limited and USP Industrial Pte. Ltd on August 7, 2020. Under the agreement, the AJ Jetting will acquire 66.58 million shares, USP Industrial Pte. Ltd will sell 61.3 million shares and USP Group Jetting will sell 5.3 million shares. As the sale shares represent the USP’s entire interest in Biofuel, the USP will cease to have any interest in Biofuel, and Biofuel will cease to be a subsidiary of the USP Group following the completion of the transaction. Pursuant to the terms of the legally binding term sheet, Aj Jetting has placed a deposit of SGD 1.5 million upon signing of the term sheet and SGD 4.09 million will be paid on closing. In the event that the AJ Jetting elects not to proceed with closing through no fault of the USP, the USP id entitled to deduct a break fee of SGD 0.1 million from the First Payment and return the remaining monies to the AJ Jetting. In the event that the USP elect not to proceed with closing through no fault of the AJ Jetting, the USP shall immediately refund the First Payment to AJ Jetting in full and pay a break fee of SGD 0.1 million. The transaction is subject to certain conditions precedent, including but not limited to, the completion of satisfactory due diligence by Aj Jetting and the approval by the shareholders of USP Group Limited, approval of board of directors of Biofuel. As of January 21, 2021, USP Group is in the process of obtaining regulatory approval and is expected to conduct a shareholder meeting regarding the disposal by March 31, 2021. The closing of the disposal shall take place on a date as may be agreed by Aj Jetting and USP in writing on or prior to the date falling four months from the date of the First Payment, or such other date as the parties may agree in writing. The net proceeds from the transaction will be used for repayment of the USP’s borrowings, working capital purposes and to undertake new investment opportunities that may arise in the future. The transaction is expected to close on September 12, 2020. As of September 3, 2020, The long stop date has been extended to December 12, 2020. As of December 11, 2020, the long stop date has been extended to June 12, 2021. As of January 21, 2021, the completion of the transaction is expected to take place no later than March 31, 2021. Aj Pte Ltd cancelled the acquisition of 93.09% stake in Biofuel Research Pte. Ltd. from USP Group Limited (SGX:BRS) and USP Industrial Pte. Ltd on May 11, 2021.