Insights Law assists SGX-ST Catalist-listed company, Hengyang Petrochemical Logistics Limited, with completion of the increase in registered capital of its China-based joint venture company
Insights Law LLC is pleased to have assisted Singapore Stock Exchange’s Catalist-listed company, Hengyang Petrochemical Logistics Limited (“Hengyang”), with its successful completion of the increase in the registered capital of its joint venture company, Jiangyin Foreversun Chemical Logistics Co., Ltd. (the “China Holdco”) by RMB160 million (equivalent to approximately S$33.22 million) (the “Increase in Registered Capital”). The total consideration for the Increase in Registered Capital was RMB268.80 million (equivalent to approximately S$55.80 million).
The Increase in Registered Capital was undertaken through (a) cash injections by two existing shareholders of the China Holdco and by Jiangyin Golden Bridge Chemical Co., Ltd. (“Jinqiao Chemical”), an existing creditor of the China Holdco, which subscribed for new registered capital in the China Holdco accordingly (the “IPT Subscription Exercise”); and (b) a debt capitalization exercise in which outstanding amounts due from the China Holdco to Jinqiao Chemical were capitalized as equity interest in the China Holdco issued to Jinqiao Chemical (the “Debt Capitalisation Exercise”, and together with the IPT Subscription Exercise, the “IPT Transactions”). The IPT Transactions constituted “interested person transactions” under Rule 904(4) of the Singapore Exchange Securities Trading Limited Listing Manual Section B: Rules of Catalist (the “Catalist Rules”).
The Increase in Registered Capital has been completed on 20 January 2023. Relevant announcements and shareholders’ circular on the Increase in Registered Capital have been released via SGXNet on 13 July 2022, 19 August 2022, 5 September 2022, 12 September 2022 and 20 January 2023.
The Insights Law team was led by Dr. Qiu Yang (Director), assisted by Ms. Ngim Dean Gee and Ms. Vivien Chee.