Joint Announcement of CASH (Net2Gather) and CFSG
By The Cash Group, PRNETuesday, June 14, 2011
HONG KONG, June 15, 2011 -
CASH* (HKEx: 1049) (to be renamed as “Net2Gather (China)
Holdings Limited”), together with its associate CFSG** (HKEx: 510),
today make a joint announcement to welcome the shareholder’s
support from significant shareholder, Abdulrahman Saad Al-Rashid
& Sons Company Limited (ARTAR Group).
By way of background, the ARTAR Group has major presence in
Saudi Arabia and owned by a Middle Eastern family interest (
ARTAR Group is internationally recognised as an investment
institution which is a long term and fundamental value
investor.
In recognition of the long term and fundamental value of CASH
and CFSG, the ARTAR Group would have in total invested for about
US$17 million (about HK$132,600,000) in the two companies by (1)
subscription of a convertible note of CASH for US$12,000,000 (about
HK$93,600,000), (2) acquiring shares of CFSG to take their
ownership to 7.98% of CFSG, and (3) subscription of 30,000,000 CASH
shares in the recent placing exercise for HK$15,300,000.
Mr. Saad Al-Rashid, General Manager of the ARTAR Group, said,
“We are long term fundamental value investors. We have noticed
recent volatility in the share prices of CASH and CFSG for reasons
unknown to the management, and we see it as a good opportunity to
make a further investment in the CASH Group.
“Since 2003 when I first met Bankee, his passion and enthusiasm
in developing the CASH Group into a leading services conglomerate
in China had convinced me that they are our ultimate partner in the
China market and his current focus will unlock value, in my view,
for all shareholders of the CASH Group…” Mr. Al-Rashid continues.
Mr. Bankee Pak-hoo Kwan, Chairman and CEO of CASH, said, “We are
very pleased to have the long-term support of the ARTAR Group.
This is especially important at times when, for reasons
unknown, the share prices of the CASH Group members faced
volatility, which management believes does not reflect the
fundamental strength and soundness of our operations.”
“We will continue to focus on developing our Mobile Internet
business for CASH and financial services business for CFSG in
China, which are both multi-billion dollar industries in China and
maximise shareholders’ returns,” Mr. Kwan continues.
The conversion price of the CASH shares under the convertible
note is HK$0.50 per share and represents a premium of about 42.9%
over the closing price of HK$0.35 per share as quoted on 13 June
2011. This reflects the share price on 8 June 2011 when the
CASH Group closed a world class transaction with Oberon Media to
acquire a repertoire of 1,200 casual games for its Mobile Internet
business.
“We firmly believe in the prospects of CASH and CFSG and are
confident about their businesses. Their underlying valuation
should in our view be much higher than the current level and we
urge all shareholders to align with us,” added Mr. Saad
Al-Rashid.
*CASH - Celestial Asia Securities
Holdings Limited
**CFSG - CASH Financial Services
Group Limited
About CASH Group (to be renamed as “Net2Gather
(China) Holdings Limited”)
The CASH Group (Celestial Asia Securities Holdings Limited)
currently focuses on developing Internet and mobile related
services in China. Headquartered in Shanghai, CASH has more than
450 dedicated employees, including 350 research and development
(R&D) professionals. In relation to (1) its online game
platform with a database of 40 million subscribers over existing
online games, the team has developed two next-generation and
much-anticipated online games, “Tales of Ocean Fantasy” and
“Superhero”, which will be launched during the second half of this
year. “Superhero” was named the “Best Self-Developed Online Game”
in China’s prestigious Golden Plume Awards in 2010. iPhone
versions of these games are also being developed. In relation to
its (2) mobile platform, Moli Group has completed the tie-up with
Oberon Media, for over 1,200 casual games for selection and
adaptation by the Moli Group in China, and targeted marketing
including to the Moli Group’s 40 million online subscribers and the
mobile and “meyouto” SNS platform with 20 million subscribers.
These are parts of the Group’s aim to (3) build a cross value chain
of Mobile Internet activities across the Mobile, Internet and
Television platforms which are being converged under China’s
policy.
About CASH Financial Services Group
(CFSG)
CASH Financial Services Group Limited (”CFSG”) is a leading
financial services conglomerate that has been servicing clients in
Hong Kong for almost 40 years. CFSG offers a comprehensive
range of premier financial products and services catering to the
investment and wealth management needs of clients in China.
CFSG operates one of Hong Kong’s prime securities and
commodities brokerages. The investment banking division
serves regional corporations on a broad range of corporate finance
and financial advisory matters. Another professional arm of
CFSG is wealth management, which offers mid to long-term investment
products to better serve the various investment and financial
planning needs of our clients. CASH Asset Management provides
one-stop asset management service for corporate and individual
clients to achieve highest risk-adjusted return in this fast
changing investment environment. CFSG is listed on the main board
of the Hong Kong Stock Exchange [SEHK: 510]. For more
information, please visit
About ARTAR Group
The ARTAR Group has a major presence in Saudi Arabia and is an
internationally recognised investment institution. Their
investments include contracting, real estate, trading, industrial,
food catering, agriculture, banking, and health care, with
investments in real estate, equities, bonds and private placements.
They are fundamental long-term value investors. For
more information, please visit
Please note: The above information
contains forward-looking statements that involve risks and
uncertainties and are based on information of the parties in good
faith believes to be reliable as of the date thereof. The actual
results may differ. Please exercise care and caution and read the
information with the public announcements and circulars which the
information is subject to. All figures are approximation.
Ms. Chloe Chu, +852-2287-8317, chloe.chu at cash.com.hk
Tags: Asia, Hong Kong, June 15, The Cash Group
