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News for Year 2009 </td> </tr> <tr> <td height="20" align="right" class="style3" onMouseOver="this.className='subNaviOver'" onMouseOut="this.className='subNavi'" onClick="location.href='../news/news.html'"> Access to the Micro Site</td> </tr> <tr> <td height="20" align="right" class="style3" onMouseOver="this.className='subNaviOver'" onMouseOut="this.className='subNavi'" onClick="location.href='../news/news_opt.html'"> Contents </td> </tr> <tr> <td height="20" align="right" class="style3" onMouseOver="this.className='subNaviOver'" onMouseOut="this.className='subNavi'" onClick="location.href='../news/hold.html'"> 18 August 2009 </td> </tr> <tr> <td height="20" align="right" class="style3" onMouseOver="this.className='subNaviOver'" onMouseOut="this.className='subNavi'" onClick="location.href='../news/offer_sw.html'"> 30 September 2009 </td> </tr> <tr> <td height="20" align="right" class="style3" onMouseOver="this.className='subNaviOver'" onMouseOut="this.className='subNavi'" onClick="location.href='../news/oct.html'"> 14 October 2009 </td> </tr> <tr> <td height="20" align="right" class="style3" onMouseOver="this.className='subNaviOver'" onMouseOut="this.classNam'subNavi'" onClick="location.href='../news/oct21.html'"> 21 October 2009 </td> </tr> <tr> <td height="20" align="right" class="style3" onMouseOver="this.className='subNaviOver'" onMouseOut="this.classN9m'subNavi'" onClick="location.href='../news/oct28.html'"> 28 October 2009 </td> </tr> <tr> <td height="20" align="right" class="style3" onMouseOver="this.className='subNaviOver'" onMouseOut="this.classN9m'subNavi'" onClick="location.href='../news/nov11.html'"> 11 November 2009</td> </tr> <tr> <td height="20" align="right" class="style3" onMouseOver="this.className='subNaviOver'" onMouseOut="this.classNam'subNavi'" onClick="location.href='../news/nov12.html'"> 12 November 2009</td> </tr> <tr> <td height="20" align="right" class="headlineLinks"><hr width="100%" size="1"> &gt; Archived News </td> </tr> <tr> <td height="20" align="right" class="subNavi" onMouseOver="this.className='subNaviOver'" onMouseOut="this.className='subNavi'" onClick="location.href='../news/news_2007.html'">Year 2007 </td> </tr> <tr> <td height="20" align="right" class="subNavi" onMouseOver="this.className='subNaviOver'" onMouseOut="this.className='subNavi'" onClick="location.href='../news/news_2006.html'">Year 2006 </td> </tr> <tr> <td height="20" align="right" class="subNavi" onMouseOver="this.className='subNaviOver'" onMouseOut="this.className='subNavi'" onClick="location.href='../news/news_2005.html'">Year 2005 </td> </tr> <tr> <td height="10" class="subNavi"><img src="../images/spacer.gif" width="1" height="10"></td> </tr> <tr> <td background="../images/subNaviBottomBG.jpg">&nbsp;</td> </tr> </table></td> <td width="630" valign="top"><!-- InstanceBeginEditable name="MainContent2" --> <table width="100%" height="425" border="0" cellpadding="0" cellspacing="0" background="../images/bottom_contentBG1.jpg"> <tr> <td height="60" valign="top"><table width="600" height="50" border="0" align="center" cellpadding="10" cellspacing="0"> <td>&nbsp;</td> </tr> </table></td> </tr> <tr> <td><table width="620" height="345" border="0" align="right" cellpadding="0" cellspacing="0"> <tr> <td valign="top"><table width="545" height="300" border="0" align="center" cellpadding="0" cellspacing="0"> <tr> <td height="10" colspan="2" valign="top"><img src="../images/spacer.gif" width="1" height="10"></td> </tr> <tr> <td width="525" valign="top"><DIV class="defaultText" STYLE="scrollbar-face-color:#333333; scrollbar-shadow-color:#000000; scrollbar-highlight-color:#000000; scrollbar-3dlight-color: #000000; scrollbar-darkshadow-color:#000000; scrollbar-track-color:#000000; scrollbar-arrow-color:#FFFFFF;overflow: auto; width:540; height:300; border:0 #000000 solid; text-align: left; padding: 2px"> <p class="defaultText"><div align="center"><strong>SINCERE WATCH LIMITED</strong> <br> (Incorporated in the Republic of Singapore)<br> (Company Registration Number 197700967C)<br> (the "Company") <br><br><span style="font-size:14px; font-weight:bold;">VOLUNTARY CONDITIONAL CASH OFFER FOR THE COMPANY</span><br><br> <table width="100%" cellspacing="0" cellpadding="3" border="0" class="defaultText"> <tr valign="top"> <td><strong>A.</strong></td> <td><strong>Introduction</strong></td> </tr> <tr valign="top"> <td colspan="2"> The Board of Directors of the Company (the "<strong>Board</strong>") wishes to inform the shareholders of the Company (the "<strong>Shareholders</strong>") that Sincere Holdings Limited (the "<strong>Offeror</strong>"), has today announced (the "<strong>Offer Announcement</strong>") the Offeror's intention to make a voluntary conditional cash offer (the "<strong>Offer</strong>") for all of the issued ordinary shares (the "<strong>Shares</strong>") in the capital of the Company, other than those Shares held directly or indirectly, by the Offeror as at the date of the Offer (the "<strong>Offer Shares</strong>").<br><br> According to the Offer Announcement, the Offeror does not own or control any issued Shares in the capital of the Company as at the date of the Offer Announcement. The shareholdings in the Company of the parties acting in concert with the Offeror are disclosed in paragraph 9.1 of the Offer Announcement. </td> </tr> <tr valign="top"> <td>B.</td> <td> <strong>Terms of the Offer</strong> </td> </tr> <tr> <td colspan="2"> The Offer is subject to the terms and conditions stated in the Offer Announcement.<br><br> The following information is extracted from the Offer Announcement: </td> </tr> <tr> <td colspan="2" height="10"></td> </tr> <tr> <td width="20">"<strong>2.</strong></td> <td><strong><u>THE OFFER</u></strong></td> </tr> <tr valign="top"> <td>2.1</td> <td> In accordance with Rule 15 of The Singapore Code on Take-overs and Mergers (the "<u><strong>Code</strong></u>"), and subject to the terms and conditions set out in the offer document to be issued by the Offeror (the "<u><strong>Offer Document</strong></u>"), the Offeror will make the Offer for the Offer Shares on the following basis: <br><br> <strong>For each Offer Share: S$0.54828 in cash (the "<u>Offer Price</u>")</strong> </td> </tr> <tr valign="top"> <td>2.2</td> <td> The Offer Shares are to be acquired (a) fully-paid, (b) free from all liens, equities, mortgages, charges, encumbrances, rights of pre-emption and other third party rights and interests of any nature whatsoever and (c) together with all rights, benefits and entitlements attached thereto as at the date hereof and hereafter attaching thereto (including the right to receive and retain all dividends and other distributions (if any) which may be announced, declared, paid or made thereon by the Company on or after the date of this Announcement, but excluding the right to receive and retain any amounts payable by the Company in respect of the approximately S$10,334,055 dividend (the "<u><strong>2008 Dividend</strong></u>") declared and approved by the Company on 3 September 2008). <strong>Save for the 2008 Dividend, if any dividend, other distribution or return of capital is declared, made or paid on or after the date of this Announcement, the Offeror reserves the right to reduce the Offer Price by the amount of such dividend, distribution or return of capital. </strong> </td> </tr> <tr> <td colspan="2" height="10"></td> </tr> <tr> <td width="20">3.</td> <td><u><strong>CONDITION</strong></u></td> </tr> <tr valign="top"> <td>3.1</td> <td> The Offer will be conditional upon the Offeror having received, by the close of the Offer, valid acceptances in respect of such number of Offer Shares which, together with the Shares owned, controlled or agreed to be acquired by the Offeror either before or during the Offer and pursuant to the Offer or otherwise, will result in the Offeror holding such number of Shares carrying more than 50% of the voting rights of the Company (the "<u><strong>Minimum Acceptance Condition</strong></u>"). </td> </tr> <tr valign="top"> <td>3.2</td> <td> The Offeror has obtained a Deed of Undertaking (as defined in paragraph 4.3 below) from the Security Trustee (as defined in paragraph 4.2.4 below) acting on the instructions and on behalf of the Lenders (as defined in paragraph 4.1.2 below), pursuant to which the Security Trustee undertakes to accept the Offer in respect of the Charged Shares (as defined in paragraph 4.2.4 below), representing approximately 99.42% of the Offer Shares. In the event that the Offeror receives acceptances in respect of the Charged Shares pursuant to the terms of the Deed of Undertaking, the Minimum Acceptance Condition will have been satisfied. </td> </tr> <tr> <td colspan="2" height="10"></td> </tr> <tr> <td width="20"><strong>4.</strong></td> <td><u><strong>INFORMATION ON THE OFFEROR</strong></u></td> </tr> <tr valign="top"> <td>4.1</td> <td> <strong>The Offeror</strong> </td> </tr> <tr valign="top"> <td>4.1.1</td> <td> The Offeror is a company incorporated in the Cayman Islands on 9 July 2009 and its principal activity is that of an investment holding company. </td> </tr> <tr valign="top"> <td>4.1.2</td> <td>For the purpose of the Offer, Standard Chartered Private Equity Limited ("<u><strong>SCPEL</strong></u>"), L Capital Sincere Cayman Ltd ("<u><strong>L Capital</strong></u>") and Triple A Enterprises Pte Ltd ("T<u><strong>AEPL</strong></u>"), together with ABN AMRO Bank N.V., Hong Kong Branch ("<u><strong>ABN AMRO</strong></u>"), BNP Paribas, Hong Kong Branch ("<u><strong>BNP</strong></u>") and ING Bank N.V., Hong Kong Branch ("<u><strong>ING</strong></u>" and together with ABN AMRO and BNP, collectively, the "<u><strong>Lenders</strong></u>") have formed a consortium (the "<u><strong>Consortium</strong></u>"), pursuant to which each member of the Consortium funded the Offer through a subscription of shares in the Offeror. The subscription of shares in the Offeror by each member of the Consortium was by way of cash injection, except that the subscription price payable by the Lenders for their equity in the Offeror (S$22,864,000) (the "<u><strong>Set Off Amount</strong></u>") is being set off against a portion of the total cash consideration (approximately S$112,665,262) that will be due to the Security Trustee (on behalf of the Lenders) for accepting the Offer in respect of the Charged Shares, such that the net amount payable to the Security Trustee (on behalf of the Lenders) will be approximately S$89,801,262. TC Capital Advisory Ltd. ("<u><strong>TC Capital</strong></u>"), the financial advisor of the Offeror, has also been allotted and issued with shares in the Offeror as consideration for the services of TC Capital as financial advisor to the Offeror in connection with the Offer. </td> </tr> <tr valign="top"> <td>4.1.3</td> <td>As at the date of this Announcement, the shareholders of the Offeror and their respective approximate shareholding proportions in the Offeror are as follows: </td> </tr> <tr valign="top"> <td>&nbsp;</td> <td> <table class="defaultText" width="100%" border="0" cellspacing="0" cellpadding="3"> <tr> <td width="100"> (a) SCPEL<br> (b) L Capital<br> (c) TAEPL <br> (d) ABN AMRO<br> (e) BNP <br> (f) ING <br> (g) TC Capital <br> </td> <td> 26.33%<br> 26.33%<br> 26.33%<br> 10.00%<br> 2.75%<br> 7.25%<br> 1.00%<br> </td> </tr> </table> </td> </tr> <tr valign="top"> <td>4.1.4</td> <td>As at the date of this Announcement, the directors of the Offeror are Mr William Edward Alastair Morrison (a representative of SCPEL), Mr Ravindar Singh Thakran (a representative of L Capital) and Mr Tay Liam Wee ("<u><strong>Mr Tay</strong></u>") (a representative of TAEPL). </td> </tr> <tr valign="top"> <td>4.2</td> <td><strong>The Consortium Members</strong> </td> </tr> <tr valign="top"> <td>4.2.1</td> <td>SCPEL is a company incorporated under the laws of Hong Kong and is an indirect wholly-owned subsidiary of Standard Chartered Bank ("<u><strong>SCB</strong></u>"). SCPEL has been formed primarily as an investment holding company of SCB to make private equity investments in the Asia-Pacific region. It invests in mid to late stage companies in need of expansion capital or acquisition finance, and in management buy-outs. </td> </tr> <tr valign="top"> <td>4.2.2</td> <td>L Capital is an investment holding company incorporated in the Cayman Islands in which L Capital Asia, L.L.C ("<u><strong>L Capital Asia</strong></u>") holds a majority stake of 97.30% and Mr Ravindar Singh Thakran (a director of L Capital Asia) holds the remaining minority stake of 2.70%. L Capital Asia is an investment fund sponsored by Flavius Investissements S.A. ("<u><strong>Flavius</strong></u>") and managed by L Capital Asia Advisors (a wholly-owned subsidiary of Flavius providing fund management and investment advisory services to L Capital Asia). Flavius is a subsidiary of LVMH Moet Hennessy Louis Vuitton S.A. ("<u><strong>LVMH</strong></u>") in which LVMH has an indirect shareholding interest of 99.99%. </td> </tr> <tr valign="top"> <td>4.2.3</td> <td>TAEPL is a company incorporated under the laws of the British Virgin Islands and wholly-owned by Mr Tay. Mr Tay is also a director in TAEPL as well as the Chief Executive Officer and Managing Director of the Company. </td> </tr> <tr valign="top"> <td>4.2.4</td> <td>The Lenders are a syndicate of banks comprising ABN AMRO, BNP and ING who had entered into a US$500,000,000 term loan facility (the "<u><strong>Facility</strong></u>") on 1 February 2008 (as amended and restated on 25 March 2008) with A-A United Limited ("<u><strong>A-A United</strong></u>") (a wholly-owned subsidiary of Peace Mark (Holdings) Limited (In Provisional Liquidation) ("<u><strong>Peace Mark</strong></u>")), as borrower, and ABN AMRO Bank N.V., Singapore Branch (the "<u><strong>Security Trustee</strong></u>") as security trustee, for the purpose of funding the Peace Mark Offer (as defined in paragraph 5.3 below). In connection with the Facility and pursuant to a share charge agreement dated 1 February 2008, A-A United charged 205,488,549 Shares to the Lenders as security for the Facility (the "<u><strong>Charged Shares</strong></u>") to be held by the Security Trustee in trust for the benefit of the Lenders. Subsequently on 9 September 2008, the Security Trustee issued a notice of default to A-A United (the "<u><strong>Default Notice</strong></u>") notifying that events of default had occurred under the Facility. On 15 September 2008, the Security Trustee took a further step to preserve its security interest and instructed the custodian of the Charged Shares to release the Charged Shares to the Security Trustee. By about 19 September 2008, the Security Trustee had taken physical possession of the share certificate in respect of the Charged Shares together with the share transfer form in respect of the Charged Shares duly executed by the custodian in escrow. The actions taken by the Security Trustee did not constitute foreclosure on the Charged Shares and title in the Charged Shares was not transferred to the Security Trustee or the Lenders. </td> </tr> <tr valign="top"> <td>4.3</td> <td><strong>Deed of Undertaking</strong> <br><br>The Security Trustee (acting on the instructions and on behalf of the Lenders) has entered into a deed of undertaking dated 30 September 2009 with the Offeror (the "<u><strong>Deed of Undertaking</strong></u>"), pursuant to which the Security Trustee undertakes to, inter alia, accept the Offer in respect of the Charged Shares, representing approximately 99.42% of the Offer Shares. Under the terms of the Deed of Undertaking, it is further agreed,<em> inter alia</em>, that: <br><br> <table class="defaultText" width="100%" border="0" cellspacing="0" cellpadding="3"> <tr valign="top"> <td width="20">(a)</td> <td>the Security Trustee s right and interest in its pro rata entitlement to the 2008 Dividend shall be assigned absolutely to the Offeror on and with effect from the date of payment by the Offeror to the Security Trustee of the balance consideration for the Charged Shares pursuant to the acceptance of the Offer by the Security Trustee (the "<u><strong>Assignment</strong></u>"); and</td> </tr> <tr valign="top"> <td width="20">(b)</td> <td>the undertaking from the Security Trustee will lapse if:</td> </tr> <tr> <td>&nbsp;</td> <td> <table class="defaultText" width="100%" border="0" cellspacing="0" cellpadding="3"> <tr valign="top"> <td width="20">(i)</td> <td>the Offer (including any improved Offer by or on behalf of the Offeror) is withdrawn;</td> </tr> <tr valign="top"> <td width="20">(ii)</td> <td>the Offeror fails to release an announcement of the Offer on or before 30 September 2009, or such other date as may be extended by the Offeror in mutual agreement with the Security Trustee, subject to the requirements of the Code; or</td> </tr> <tr valign="top"> <td width="20">(iii)</td> <td>the Offeror fails to despatch the Offer Document by 21 October 2009, or such other date as may be extended by the Offeror in mutual agreement with the Security Trustee, subject to the consent of the Securities Industry Council and the requirements of the Code.</td> </tr> </table> </td> </tr> </table> </td> </tr> <tr valign="top"> <td width="20">4.4</td> <td><strong>Deferred Dividend</strong></td> </tr> <tr valign="top"> <td width="20">4.4.1</td> <td>In consideration of the Lenders procuring the Security Trustee to provide the Assignment, it is agreed between the members of the Consortium that the Lenders will, following the close of the Offer (but subject to the availability of resources and the business needs of the Offeror, the Company and its subsidiaries) have a first right of participation on any future dividends declared by the Offeror of up to S$6,000,000 (the "<u><strong>Deferred Dividend</strong></u>").</td> </tr> <tr valign="top"> <td width="20">4.4.2</td> <td>The Offeror has obtained a confirmation from the Securities Industry Council that the equity participation of the Lenders in the Offeror and the payment of the Deferred Dividend do not constitute special deals for the purpose of Rule 10 of the Code."</td> </tr> <tr> <td colspan="2" height="10"></td> </tr> <tr> <td colspan="2"> For further details of the Offer, please refer to the Offer Announcement. Shareholders are encouraged to refer to the full text of the Offer Announcement as it contains important information, including the rationale for the Offer and the Offeror's intention to exercise its right of compulsory acquisition under Section 215(1) of the Companies Act.<br><br> According to the Offer Announcement, the offer document setting out the terms and conditions of the Offer (the "<u><strong>Offer Document</strong></u>") and enclosing a Form of Acceptance and Transfer will be despatched to holders of Offer Shares not earlier than 14 days but not later than 21 days from the date of the Offer Announcement. </td> </tr> <tr valign="top"> <td width="20"><strong>C.</strong></td> <td><strong>Posting of Announcements</strong></td> </tr> <tr valign="top"> <td colspan="2">A copy of the Offer Announcement is available on the Company's website (<a href="http://www.sincere.com.sg">www.sincere.com.sg</a>) (the "<strong>Company's Website</strong>") and was accompanied by a paid press notice appearing in the Singapore Business Times. All future announcements relating to or in connection with the Offer (whether such announcements are made by or on behalf of the Offeror or the Company) will be posted on the Company's Website only, save for any announcements which are required in relation to Rule 28 of The Singapore Code on Take-Overs and Mergers which, in addition to being posted on the Company's Website, will be accompanied by a paid press notice.<br><br> <strong>Shareholders are therefore advised to regularly check the Company's Website for any updates and new announcements relating to the Offer. The Company assumes no responsibility for alerting Shareholders when such updates and announcements are made, save as expressly set out above.</strong></td> </tr> <tr valign="top"> <td width="20"><strong>D.</strong></td> <td><strong>Independent Financial Adviser</strong></td> </tr> <tr> <td colspan="2"> The Company has on 28 September 2009, appointed CIMB Bank Berhad, Singapore branch ("<strong>CIMB</strong>") as independent financial adviser to advise the Board in connection with the Offer. The Securities Industry Council ("<strong>SIC</strong>") has on 1 September 2009 ruled that all of the directors of the Company (the "<strong>Directors</strong>") are exempted from the requirement to make a recommendation on the Offer to the Shareholders as each of the Directors faces an irreconcilable conflict of interest in doing so. Nevertheless, each of the Directors shall still be responsible for the accuracy of facts stated or opinions expressed in documents and advertisements issued by or on behalf of the Company in connection with the Offer. As all the Directors of the Company have been exempted by the SIC, the responsibility for making a recommendation to the Shareholders shall reside primarily with CIMB.<br><br> A circular (the "<strong>Offeree Circular</strong>") containing the advice of CIMB will be sent to Shareholders within fourteen (14) days from the date of despatch of the Offer Document.<br><br> <strong>In the meantime, Shareholders are advised to refrain from taking any action in respect of their Offer Shares which may be prejudicial to their interests, and to exercise caution when dealing in their Offer Shares, until they and their advisers have considered the information and the recommendation of CIMB to be contained in the Offeree Circular. </strong> </td> </tr> <tr valign="top"> <td width="20"><strong>E.</strong></td> <td><strong>Responsibility Statement</strong></td> </tr> <tr valign="top"> <td colspan="2"> The Directors of the Company (including those who may have delegated detailed supervision of this Announcement) have taken all reasonable care to ensure that the facts stated and opinions expressed in this Announcement are fair and accurate and that no material facts have been omitted from this Announcement, and they jointly and severally accept responsibility accordingly.<br><br> Where any information has been extracted from published or otherwise publicly available sources (including, without limitation, the Offer Announcement), the sole responsibility of the Directors of the Company is to ensure through reasonable enquiries that such information has been accurately extracted from such sources or, as the case may be, accurately reflected or reproduced in this Announcement.<br><br> BY ORDER OF THE BOARD<br><br> John Howard Batchelor<br> Chairman<br> 30 September 2009<br><br> </td> </tr> </table> </div> </div></td> </tr> </table></td> </tr> </table></td> </tr> </table> <!-- InstanceEndEditable --></td> </tr> </table> </td> </tr> <tr> <td height="35" valign="top"><table width="700" border="0" align="center" cellpadding="0" cellspacing="0"> <tr align="center"> <td height="15" colspan="5"><img src="../images/spacer.gif" width="1" height="15"></td> </tr> <tr align="center"> <td width="150" height="20"><a href="../retail/retail.html" onMouseOut="MM_swapImgRestore()" onMouseOver="MM_swapImage('Retail','','../images/retail_over.jpg',1)"><img src="../images/retail_buttons.jpg" alt="Retail Network" name="Retail" width="140" height="20" border="0"></a></td> <td width="190" height="20"><a href="../career/career.html" onMouseOut="MM_swapImgRestore()" onMouseOver="MM_swapImage('Career','','../images/career_over.jpg',1)"><img src="../images/career_button.jpg" alt="Career Opportunities" name="Career" width="160" height="20" border="0"></a></td> <td width="130" height="20"><a href="../contact/contact.html" onMouseOut="MM_swapImgRestore()" onMouseOver="MM_swapImage('Contact','','../images/contact_over.jpg',1)"><img src="../images/contact_button.jpg" alt="Contact Us" name="Contact" width="100" height="20" border="0"></a></td> <td width="130" height="20"><a href="../legal/legal.html" onMouseOut="MM_swapImgRestore()" onMouseOver="MM_swapImage('Legal','','../images/legal_over.jpg',1)"><img src="../images/legal_button.jpg" alt="Legal Issues" name="Legal" width="120" height="20" border="0"></a></td> <td width="100" height="20"><a href="../sitemap/sitemap.html" onMouseOut="MM_swapImgRestore()" onMouseOver="MM_swapImage('Sitemap','','../images/sitemap_over.jpg',1)"><img src="../images/sitemap_button.jpg" alt="Sincere Sitemap" name="Sitemap" width="80" height="20" border="0"></a></td> </tr> </table></td> </tr> </table></td> </tr> </table> </body> <!-- InstanceEnd --></html>