Universal plans SGX listing

By Romel S. Gurky

Singapore?s Universal Coal Resources Pte Ltd plans to undertake an SGX Catalist listing, according to ASX-listed Pan Asia Corporation Limited, and upon completion of the successful listing, the latter will receive shares in Universal to the value of S$30 million at the IPO issue price.

In early June 2015, Pan Asia announced it had entered into an exclusive Heads of Agreement with Universal Coal Resources Pte Ltd for the commercial sale of the company?s 75 percent interest in PT Transcoal Minergy (TCM) Coal Project in South Kalimantan. Universal agreed to purchase a 100 percent interest in the company?s 100 percent owned Singapore subsidiary, Innovation West Mantewe Pte Ltd (IWMPL) owner of the 75 percent interest in the TCM project (the Transaction), Pan Asia said in a statement on Friday.

To facilitate the Transaction, on May 9, 2016, Pan Asia entered into a share sale and purchase agreement (SSPA) with Universal Coal Resources Pte Ltd (Universal) for the 100 percent sale of IWMPL which owns Pan Asia?s 75 percent interest in TCM. The actual transfer of the asset was to occur upon Pan Asia gaining shareholder approval. In the meantime, Pan Asia has executed a share pledge agreement (SPA) with Universal pledging the shares on IWMPL subject to all the Commercial Arrangements below including the conditions under the SSPA being satisfied. ?The fulfillment of some of these conditions by Universal is critical to the status of the TCM asset being maintained,? the Pan Asia statement said.

Pan Asia said the intended commercial outcome of entering into the SSPA and SPA to transfer the TCM asset is to assist Universal obtain a $5 million funding facility from Polo Investments Ltd to fund the undertaking of key value adds, obtain relevant approvals for the TCM asset as well as acquire additional assets to form part of the Universal listing process on SGX, and as a result, realize Pan Asia?s TCM sale proceeds.

Editing by Reiner Simanjuntak