Business
PHI Group Forms New Subsidiary for M&A Transaction with Saigon Pho Palace JSC
PHI Group Forms New Subsidiary for M&A Transaction with Saigon Pho Palace JSC.
About this update from Phi Group Inc. (wy)
[{"type":"text","content":"\nNew York, Nov. 05, 2018 (GLOBE NEWSWIRE) -- PHI Group, Inc. (www.phiglobal.com) (OTCQB: PHIL), a U.S. diversified holding company focused on mergers and acquisitions and investments in select industries and special situations, today announced that the Company has formed a new subsidiary “American Saigon Palace Group” (“ASPG”), a Wyoming corporation, as the special purpose vehicle to hold the 51% equity interest in Saigon Pho Palace Joint Stock Company (“SGP”).\n According to the previously announced Stock Swap Agreement between with the majority shareholder of SGP and the Company, PHI Group will receive 51% of all the issued and outstanding ordinary stock of SGP in exchange for Preferred Stock or a promissory note of PHI Group, Inc. The amount of Preferred Stock or the value of the convertible note of the Company to be issued for the 51% equity interest in SGP will be based on the results of a valuation of SGP’s business by a professional, independent appraisal firm. The majority shareholder of SGP will have the option to convert the Preferred Stock or the convertible note of PHI Group into 80% stock of ASPG when this subsidiary has become a fully reporting publicly traded company in the U.S. Stock Market. SGP Palace (www.saigonphopalace.com) has an excellent track record in the field of hospitality, construction and real estate investment and is currently developing a number of prominent projects in Ho Chi Minh City and other locations in Vietnam. It has been successfully operating a chain of restaurants that cater to wedding banquets and convention events and plans to build thirty-five more restaurants of this type by 2025. In addition, SGP also has plans to build new chains of 50 “SGP Bulkoki” restaurants by 2025 and 200 “SGP X-N Coffee” shops by 2027. According to Mr. Quy Minh Le, SGP’s Chairman and General Director, its unaudited annual revenues are approximately over US$ 90 million and expected to rise sharply with the additional restaurant and coffee shop chains in the future. SGP will proceed with the necessary steps, including a business valuation by an independent appraisal firm and financial audits according to U.S. Generally Accepted Accounting Principles (GAAP). PHI Group expects to be able to report consolidated operating results fr...