NEW YORK, Sept. 16, 2016 (GLOBE NEWSWIRE) -- PHI Group (www.phiglobal.com) (OTC Markets:PHIL), a U.S. diversified holding company engaged in mergers and acquisitions, announced today that shareholders of the previously announced South African target company (“TARGET”), representing 77% of the total issued share capital and its major lenders, have approved PHI Group’s revised offer to acquire the TARGET.
Majority shareholders agreed to exchange their shares for PHI Group’s stock, which will have been dually-listed on the Johannesburg Stock Exchange or represented in a South African listed entity to comply with the respective Fund Rules and the South African regulatory framework. The exchange rate will be determined on the basis of 10 days’ Volume-Weighted Average of both companies’ stock prices.
In the event that they elect to exit for cash, existing TARGET shareholders will be granted a put option at the transaction value price three months after the transaction implementation date.
The TARGET and PHI Group will work closely together to reach imminent milestones and close this transaction by the end of November 2016 or as soon as practical.
The TARGET is a leading company in the natural resource and construction material space in South Africa with average annual revenues of approximately $70 million during the last two years. The closing of this transaction is expected to add $6 million monthly revenues to PHI Group, not to mention new initiatives to capitalize on TARGET’s capabilities to expand and grow both its domestic and international business.
PHI Group has also identified a Broad Based Black Economic Empowerment (BBBEE) consortium led by Opilong Group (Pty) Ltd., a woman-owned Johannesburg-based investment holding company as required by the laws of South Africa. The Opilong Chairwoman will be traveling to Australia in the coming weeks as she intends to bring in a valuable long-term contract for the TARGET from the BBBEE component to PHI and the TARGET.
Henry Fahman, PHI’s Chairman and CEO, said, “We are very pleased to have received the consent of the TARGET’s majority shareholders and major lenders for the revised offer. We strongly believe our post-acquisition initiatives to internationalize TARGET’s operations will be able to create very significant value for our shareholders and all other stakeholders.”
“This signals exciting times for PHI and the TARGET as our legal team that is led by our managing partner Mojca Lukancic is preparing for the closing of the transaction. Milost Advisors will begin to look for lucrative targets in South Africa that can form a strong basis for strategic vertical integration to grow the market share of the TARGET,” stated Bonisile Mtsweni, Vice President of M&A’s at Milost Advisors Africa.
About PHI Group, Inc.
PHI Group, Inc., a U.S. publicly traded company established in 1982, is engaged in mergers and acquisitions and is currently in the process of acquiring controlling interest in a number of targets in select industries with intention to build a critical mass and uplist to a senior exchange as soon as practical.
Safe Harbor: This news release and the featured interview contain forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.
Contact: Henry Fahman +1-702-475-5430 Email: email@example.com
Source: PHI Group, Inc.