Monday, June 30, 2008

Australian exploration company acquires assets in BVI- and UK-based corporations worth US$44 mln

Australian exploration company Newland Resources Ltd. has entered into an agreement to acquire share of assets US$44mln worth from the private investment company Pacific International Management Inc. According to the letter of intent signed by the companies, Newland will acquire 50% stock of Zeus Petroleum Ltd, UK-based petroleum exploration company, and 26% of South American Ferro Metals Ltd, a British Virgin Islands-registered company which owns iron ore assets in Brazil.

Newland attributed value of US$32 mln to 50% interest in Zeus, while 26% interest in the BVI company was said to be worth US$12 mln.

Consideration for the proposed acquisition is the issue of 28 million Newland shares to Pacific, and US$30 million of 5 year convertible notes with a coupon rate of 8%, at $0.50 per Newland share.

Wednesday, June 25, 2008

BVI law firm Harney Westwood & Riegels announces merger with Cayman-based firm

The largest offshore law firm in the British Virgin Islands Harney Westwood & Riegels merges with C.S. Gill & Co, a firm based in the Cayman Islands. The office of the merged firm will open on September 1 in George Town, Grand Cayman. The head of investment funds sector of the BVI firm, Kieron O'Rourke, and fellow partner Tim Clipstone will relocate to Cayman from Harney’s BVI office and will head the cross-border commercial transactions of the merged firm, with particular focus on hedge funds and private equity, structured finance, asset and project finance and insolvency.

Firm’s managing partner Richard Peters commented on the merger saying that Harneys has been the BVI leading law firm for the past 40 years, its brand being “synonymous with dedication and quality”, and “the addition of a Cayman practice is all about providing a more complete service to our clients and enabling them to realise their commercial goals”.

Senior partner of the merged firm in Cayman, Casey Gill, noted that the commitment and resources of Harneys as a leading offshore law firm “will enhance the services offered from the Cayman Islands to clients throughout the globe and lead to increased economic benefits for the islands”.

Harneys has a network of offices in the Caribbean region, in Europe and Asia, which provides law firms, financial institutions and corporations with BVI, Anguilla and now Cayman law-related legal services. The firm also has an affiliated corporate services business, providing company formation and administration services in these jurisdictions.

Sunday, June 22, 2008

Encorium Group, Inc. merges to a BVI company

Encorium Group Inc., the company designing and running clinical trials and patient disease registries for the pharmaceutical, biotechnology and medical device industries, announced on June 11 the merger of the British Virgin Islands-registered Fine Success Investments Ltd. into Encorium. It was said that Fine Success Investments (BVI) will add $11 million in annual net revenue to Encorium on a pro forma basis.

The merger transaction is now subject to the completion of due diligence and approval by both parties' Board of Directors, and the signing of a definitive agreement. The deal is expected to close in the third quarter of 2008.

By the time of the planned merger, the BVI company which does business as Linkcon, will acquire clinical research organisations in India, Latin America and China. In its turn, Encorium has signed a letter of intent to purchase an oncology-focused clinical research organization – Prologue Research International Inc. - for $13 mln, of which $4.5 mln will be paid in cash. In order to do so, Encorium plans to take out a $5 mln loan from Chardan Capital.

Linkcon investors will receive 12.5 mln shares of Encorium stock, and after the merger Linkcon expects to purchase additional 10 mln shares of the Encorium. So, Linkcon and its shareholders will get 22.5 mln shares and Encorium shareholders will stay with about 23.6 million shares.

The company formed as a result of the merger of the BVI-incorporated Fine Success with Encorium Group Inc. is expected to have annual revenue of about $50 mln to $55 mln.

Wednesday, June 18, 2008

Southern Sauce Company, Inc. completes the acquisition of Shengkai Industrial through the BVI-based corporation Shen Kun International Limited

Last week Southern Sauce Company, Inc. announced the acquisition of British Virgin Islands corporation Shen Kun International Limited. The agreement was signed on June 9, 2008. The BVI company, through China-based Shengkai (Tianjin) Ceramic Valves Co., Ltd., has a series of contracts with Tianjin Shengkai Industrial Technology Development Co., Ltd., which gives it full control over Shengkai's business, personnel and finances.

The Chinese company Shengkai is engaged in the design, manufacturing and sales of ceramic valves, high-tech ceramic materials, technical consultation and services, and import and export of ceramic valves and related technologies. The company sells its products in China, North America and the Asia-Pacific region. Over the past two years, company's business has shown significant growth with net revenues increasing to $23,124,748 for the fiscal year ended June 30, 2007, from $13,677,946 for the fiscal year ended June 30, 2006. Net income was $6,571,802 for the fiscal year ended June 30, 2007, an increase from $4,173,926 for the fiscal year ended June 30, 2006.

On June 11, 2008 the company also closed private placement through the sale of units, consisting of shares of its Series A Convertible Preferred Stock and attached five-year warrants, at a purchase price of $2.5357 per Unit, for gross proceeds of $15 million.

Sunday, June 15, 2008

Thailand's largest coal supplier acquires 78.4% stake in the BVI company

Banpu Public Company Limited has acquired the 78.4% stake in the British Virgin Islands-registered Asian American Coal (AACI), with the purpose to consolidate its positions in the Chinese coal sector and establish China as company's third main geographic focus. The company made an investment in the amount of US$240 mln through its wholly owned subsidiary, BP Overseas Development (BPOD), which became the shareholder of the BVI company in 2003.

Banpu executives said in their statement to the Stock Exchange of Thailand that the aim of the acquisition is at giving the company board and management control of the BVI-based AACI, thereby determining company's future strategy. Under the terms of the acquisition, 32 mln shares were purchased from other shareholders, which Banpu will need to finance from its cash flow and bank loans.

The BVI-registered AACI is engaged in investment and development of coal-mining businesses in China. It has a 56% stake in Shanxi Asian American Daning Energy (SAADEC) and 45% in Shanxi Gaohe Energy (SGEC). The partners in both of these joint ventures are large Chinese coal-mining groups.

Wednesday, June 4, 2008

HK-listed Parkson Retail acquires two department stores from the BVI company

China-based and HK-listed department store operator Parkson Retail Group Ltd. reported its intention to acquire 70% of Nanning Brillian Parkson Commercial Co Ltd. and 100% of Tianjin Parkson Retail Development Co Ltd., for a total amount of 240 mln yuan. The stakes of both companies will be acquired from East Crest International Ltd, incorporated in the British Virgin Islands.

Nanning Brilliant Parkson Commercial Co Ltd. operates a Parkson-brand department store in Nanning city, Guanxi province, Tianjin Parkson Retail Development Co Ltd. operates a Parkson-brand department store in the eastern coastal municipality of Tianjin.

The last closing price of the stock acquired is 67.45 hkd per share. Parkson Retail Group Ltd. will pay 50% of the purchase price in cash, and 50% as 1.994 mln new shares.