The Board of Directors of CSE Global Limited (“CSE””) wishes to announce that its 100% owned subsidiary, CSE Global UK Limited (“CSE UK”), is currently pursuing a separate listing on the London Stock Exchange (“Listing”).There is no guarantee that the Listing will proceed as it will be subject to market conditions, valuation and amongst other things, the relevant regulatory and other approvals being obtained, execution of definitive agreements by the relevant parties and the approval of CSE’s shareholders.The separation of CSE UK will provide financial independence to both CSE and CSE UK to facilitate future access into capital markets for debt and equity funding to pursue future growth opportunities.CSE intends to divest 100% of its ownership in CSE UK and will continue to operate and enhance the remaining elements of the CSE business based in Asia-Pacific and the USA. The Listing allows CSE to realise the value in its UK business and redeploy its capital to other business opportunities. It will also allow CSE UK to grow its Healthcare and Automation businesses.CSE will return part of the net proceeds raised from the divestment to shareholders after considering, amongst other things, the net proceeds raised, the Group’s capital structure, bank borrowing/gearing, operational and future acquisition needs.In the first six months of 2013, CSE UK contributed 20% to CSE’s revenue and 33% to CSE’s profit after tax. Thus, if the Listing proceeds, CSE’s shareholders approval will be required in accordance with Chapter 10 of the Listing Manual.
The Listing is expected to be completed in the 2013 financial year.
Source: CSE Global