SGOCO Group, Ltd., a company focused on product design, distribution and brand development in the Chinese display and computer product market, has announced the acquisition of 100% of the issued share capital of Boca International Limited. (Boca). Boca is a private holding company incorporated in Hong Kong, from its sole legal and beneficial owner, Richly Conqueror Limited (the vendor), which develops and manufactures phase change material (PCM-TES) storage systems in designs and applications on cooling and heating systems.
The Boca PCM-TES storage system is environmentally friendly and can be used for more than ten years. It is both a cooling and heating system that allows to save more than 50% of energy, which is one of a kind in the market. Electricity consumption is 75% less than the current central air conditioning units in the market. Boca fully supports energy saving to help control the greenhouse effect and assist cooperation to achieve maximum economic benefit. Additionally, Boca is expecting more than 7000 projects in the US and over 8000 new and modifiable projects in China and South East Asia in the near future. Boca, along with its PCM-TES storage system, was valued at approximately US$50 million by an independent third party appraiser.
SGOCO International (HK) Limited, the company's subsidiary incorporated in Hong Kong (the purchaser) entered into a share sale and purchase agreement (the SPA) with the vendor, pursuant to which it will acquire all of the issued share capital of Boca (the sale shares). The total consideration of the sale shares includes US$52 million in the form of cash, plus 19% new shares in SGOCO (as enlarged by the issuance) or 3.4 million new shares. Under the SPA, closing of the SPA shall take place on or before 31 December 2015.
The board of directors of the company reviewed the transaction and approved it by a unanimous vote. The vendor, Boca technology owner Richard Chan Kam Biu, is a professional member of Hong Kong Invention Association and a member of the American Society of Heating, Refrigerating and Air Conditioning Engineers, Inc. He is an expert in the area of environmental energy saving while Boca is a company, which specialises in research and development and the supply of the thermal energy storage system by phase change material (PCM-TES)’. This innovative technology will dramatically reduce the energy consumption of the central chiller and heating plant.Regarding the acquisition of Boca, Xie Shi Bin, CEO of SGOCO commented, "We are excited and looking forward to abundant business opportunities brought forth through this acquisition. PCM-TES is the proven technology to install in new buildings, or when modifying existing systems, including the ice thermal energy storage system (ICE-TES) in the chiller plant. Boca PCM-TES is the better option to reduce carbon emissions by more than 50% caused by the chiller or heating plants. For example for a typical 30 000m2 air conditioned office/hotel space, the PCM-TES will reduce 2000 t of carbon dioxide annually."
Adapted from press release by Francesca Brindle
Read the article online at: https://www.hydrocarbonengineering.com/refining/04012016/sgoco-acquires-boca-international-2053/