For business expansion
Ushdev International has announced that the Board of Directors of UIL (Singapore), a subsidiary of the Company has approved a fresh issue of 5,798,000 ordinary shares to UD Trading Group Holding, for an aggregate consideration of USD 8.34 million.Further, the board of directors of UIL Hong Kong, also a subsidiary of the Company has approved a fresh issue of 45,018,000 ordinary shares to UD Trading Group Holding, for an aggregate consideration of USD 8.59 million.
After the allotment of shares by UIL (Singapore) and UIL Hong Kong as set out above, the holding of the Company in these companies will be 43.17% of the share capital of UIL, (Singapore) and 43.21% of the share capital of UIL Hong Kong.
UIL (Singapore) and UIL Hong Kong had also issued 10,000,000 and 78,000,000 non-cumulative, non-redeemable convertible preference shares respectively which have since been converted.
The shareholders of the Company have given their approval to the sale of the Company's holding in the aforementioned subsidiaries viz. UIL (Singapore) and UIL Hong Kong to UD Trading Group Holding or its designated nominees, in whole or in tranches by way of the Postal Ballot process on 19 March 2014.
The Board, of Directors of UIL (Singapore) and UIL Hong Kong have since expressed their need for additional capital for the growth of their businesses and have accordingly approved the aforementioned issue of shares.
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