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Dewei offers $10m for PG entire share capital

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New PG Industries investor, Dewei Investments Limited has offered $10 million for the purchase of the entire share capital of the company. According to a circular by the group’s board of directors, the proposed transaction also seeks to make a compromise offer to creditors for final settlement of all balances existing as at 31 December 2015 as well provide working capital and funds required for retooling. PG directors consider the offer as fair considering that the company had negative equity position of $13,121 million as at 31 December 2015 and the cash offer was viewed against the assets of the company which have a book value of $12 464 million. In addition to that, the company has also defaulted on the existing scheme with its creditors as it has failed to meet its quarterly payments to creditors per current scheme of arrangement. The transaction is expected to see the company paying its dues to creditors in addition to restoration of a positive equity position as well as meeting future funding requirements. According to the circular, the company is in serious need of working capital and failure to approve the proposed scheme will lead the company into judicial management or liquidation. – Herald

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