Aspial consolidates jewellery businesses under subsidiary Maxi-Cash in $99.8m deal

SINGAPORE – Aspial Corporation, a conglomerate with diverse businesses in jewellery retailing, real estate, hospitality, financial services and precious metal trading, will sell its jewellery business to pawnbroking and money-lending subsidiary Maxi-Cash Financial Services for as much as $99.8 million.

Under the proposed transaction, Aspial will transfer Aspial-Lee Hwa Jewellery Singapore, Gold Purple and BU2 Services to Maxi-Cash for a base consideration of $87.8 million.

Another $12 million – the “Earn-out Consideration” – will be paid out if specific milestones such as earning targets are met.

Maxi-Cash will fund the deal with new shares and cash, and by settling a debt owed from Aspial.

Aspial’s stake in Maxi-Cash will rise to 71.78 per cent from 62.56 per cent currently.

The deal is subject to approval by shareholders of both companies at their respective extraordinary general meetings (EGM) to be convened.

SAC Capital is the financial adviser for Maxi-Cash in relation to the proposed transaction.

Upon completion of the proposed transaction, Maxi-Cash will change its name to Aspial Lifestyle.

Aspial Lifestyle will own and operate two of the largest jewellery retail chains in Singapore, Lee Hwa and Goldheart, with a total of 25 retail outlets islandwide. This is on top of its existing businesses in pawnbroking, money lending, and the retail and trading of pre-owned jewellery and branded merchandise.

Mr Ng Kean Seen, chief executive officer of Maxi-Cash, said that following shareholder approval at the EGM, Aspial Lifestyle will become the pre-eminent consumer lifestyle company in Singapore with a portfolio of strong brands.

Aspial Corporation will continue to be principally engaged in real estate; a refocused local retail business, including the jewellery and financial services businesses; and other investments, including the hospitality business through its other listed associate AF Global.

The strategic exercise will enable Aspial to reorganise its business lines for greater focus and synergy. Aspial CEO Koh Wee Seng said the group will be able to consolidate its resources and leverage economies of scale.