Business
Saigon Pho Palace JSC Signs Agreement with PHI Group, Inc. to Swap Stock and Prepare for IPO
Saigon Pho Palace JSC Signs Agreement with PHI Group, Inc. to Swap Stock and Prepare for IPO.
About this update from Phi Group Inc. (wy)
[{"type":"text","content":" Saigon Pho Palace’s Revenue to Exceed $90M in Fiscal 2018 New York, Oct. 30, 2018 -- 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 signed a Stock Swap Agreement with the majority shareholder of Saigon Pho Palace Joint Stock Company (“SGP”) in order to exchange 51% of all the issued and outstanding ordinary stock of SGP for Preferred Stock or a promissory note of PHI Group, Inc., either of which may be convertible into shares of a new subsidiary of the Company. The amount of Preferred Stock or the value of the convertible note of the Company to be issued for the exchange of 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.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. It is estimated that this market segment in Vietnam generates approximately $8 billion in revenue a year. In addition, SGP also has plans to build new chains of 50 “SGP Bulkoki” restaurants by 2025 and 200 “SGP X-N Coffee” shops by 2027. According to Mr. Quy Minh Le, SGP’s Chairman and General Director, its unaudited annual revenues are approximately over US$ 90 million and expected to rise sharply with the additional restaurant and coffee shop chains in the future.According to the Stock Swap Agreement, PHI will set up a special purpose vehicle as the holding company for the 51% equity interest in SGP and, subject to meeting all necessary compliance requirements, file a registration statement with the U.S. Securities and Exchange Commission to take this subsidiary public in the U.S. Stock Market at the appropriate time in the f...