26th May 2015 08:46
LONDON (Alliance News) - Entertainment and leisure sector investment vehicle Challenger Acquisitions Ltd on Tuesday had trading in its shares suspended after it said it has signed a letter of intent for the reverse takeover of US-based engineering and manufacturing company Starneth's main operating business and as it invested in the New York Wheel project.
Challenger has invested USD3 million to acquire a 2.463% stake in New York Wheel Investor LLC, a company set up to fund the equity component of the New York Wheel, a 630-foot high observation wheel to be constructed in New York.
In addition to that, it has signed a letter of intent to buy the main operating business of Starneth, which specialises in the construction of giant observation wheels and structures. The Starneth team includes people who worked on the construction of the London Eye, Challenger said.
The consideration for the potential acquisition will consist of a fixed component payable in cash and ordinary shares together with a variable component based on the future performance of the Starneth Group, Challenger said. It did not provide any details on how many shares it will issue to cover the consideration and did not say how much the deal would be worth.
"Our investment in the New York Wheel project combined with the pending acquisition of Starneth provides an excellent platform for developing a scalable business for our shareholders
Challenger Acquisitions shares are suspended.
By Sam Unsted; [email protected]; @SamUAtAlliance
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