Cityneon Holdings Limited (SGX:5HJ) entered into an agreement to acquire Scorpio East Properties Pte Ltd. from KOP Limited (Catalist:5I1) for SGD 27.2 million on December 15, 2017. Under the terms, Cityneon Holdings will acquire 2.5 million shares and will pay approximately 7.5% of the cash consideration on the signing of the term sheet and the balance cash consideration on completion. Under the agreement, Cityneon Holdings has agreed to assume the liability for repayment of a loan obtained by Scorpio East from Hong Leong Finance Limited in the principal aggregate amount of SGD 24.02 million and an amount of SGD 0.29 million as settlement of receivables payable by Cityneon Holdings to KOP Limited. The cash consideration is subject to post-completion adjustments. Cityneon Holdings Limited intends to fund the cash consideration through internal cash resources. After completion, Scorpio East will become a wholly-owned subsidiary of Cityneon Holdings. There are no directors proposed to be appointed to Cityneon in connection with the acquisition. The transaction is subject to approval by relevant regulatory authorities, approval of Jurong Town Corporation for the change of use of the property, necessary due diligence investigations, and the bank agreeing to continue to extend the existing loan to Cityneon Holdings post-completion, at interest rate and quantum that are no less favorable to those contained in the bank’s existing letter of offer. Completion is scheduled for December 29, 2017 or such other date as agreed by parties.