SINGAPORE (Oct 22): Metech International will acquire 1.35 billion shares in Advance SCT from Zhang Baoan, the non-executive director and vice chairman of Advance, for at least $1.35 million. The sale shares represent 9% of the total issued share capital of Advance.

Zhang will also be entitled to a bonus consideration of another $1.3 million upon Advance's removal from the SGX watch-list by April 30, 2018, provided the shares maintain a volume-weighted average price of 0.2 cent per share for the 120 days leading up to the removal.

Advance SCT is a supplier of copper-based products which are manufactured in Singapore and China and distributed to electronics and power industries globally. It also operates a wastewater treatment plant in China and has a net asset value of $9.4 million.

Metech says the acquisition is in line with its plan to rationalise its current operations in electronic waste services provision and diversify its earnings base. The acquisition will also allow Metech to tap Advance's expertise and reap benefits from the synergies in the management of the metal supply chain, it adds.

Metech's shares closed 33.3% lower at 0.2 cents.