HONG KONG, June 15, 2011 /PRNewswire/ --
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 (http://www.artar.com.sa). The 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 http://www.cashon-line.com.
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 http://www.artar.com.sa.
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.
SOURCE The CASH Group