PRNewswire-Asia/ -- 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 (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 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 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