The Straits Times / The Business Times News on GMG

GMG Global inks $58m deal Mar 20, 2000 The Straits Times SESDAQ-LISTED GMG Global, a rubber plantation owner in West Africa, has bought over from a subsidiary outstanding debt worth 227 million French francs (S$57.9 million) owing to the state of Cameroon. GMG, which took over Electronic Magnetics last year, said last Friday that it made an agreement with Cameroon's Economic and Finance minister, allowing it to purchase the outstanding debt from Hevecam. The debt comprises a principal amount of 198 million French francs and interest of 29 million French francs. Under the deal, GMG will purchase the debt at a discounted price of 105.4 million French francs. It will reap an exceptional gain of 84 million French francs from it. GMG said it planned to issue new GMG shares to finance the deal, which is to be completed by June 30. The deal is expected to boost GMG's consolidated earnings per share and net tangible assets by 25 Singapore cents and $1.15 respectively.