SINGAPORE (June 30): Lereno Bio-Chem has provided more details of its proposal to acquire a stake in HTwo Education Holdings that it had earlier announced on May 4.

On June 29, Lereno said it entered into a sale and purchase agreement with sellers Venstar Investments, Venstar Investments II and Dr Yap Soon Guan to acquire 60% of HTwo Education.

Founded by Yap and Dr Gurchran Jit Singh, HTwo Education is in the business of providing education-related services that include infant and childcare services, student care, tuition, enrichment businesses and the running of a private institution.

The aggregate consideration for the acquisition is $24 million which would be satisfied by $12 million in cash and $12 million by the issue of new shares to the vendors.

As the proposed acquisition constitutes a “very substantial acquisition” transaction, approval of shareholders of the company is required, said Lereno.

Yap, Venstar Investments and Venstar Investments II will hold stakes of 20.0%, 2.3% and 2.2%, respectively, in the enlarged share capital of the company upon completion of the acquisition.

As a result, Yap will become a new controlling shareholder of Lereno.

Lereno shares last traded at 0.4 cent each, giving it a market cap of $14.7 million.