Nanyang New Development Limited Terminates Investment and Shareholders’ Agreement with Gold Bar Pte. Ltd.

Key Points of the Announcement

• Termination of Investment Agreement: Nanyang New Development Limited (formerly Matex International Limited) announced the mutual termination of its Investment and Shareholders’ Agreement with Gold Bar Pte. Ltd. (“GBPL”), Gong Hanxian, Tony Soh Tze Shen, and Wiley Partners Pte. Ltd.
• Disagreement on Business Direction: The termination follows a failure to reach consensus on a proposed change in GBPL’s business direction by other subscribers of the agreement.
• No Financial Impact or Liabilities: No payments had been made, and no penalties or obligations remain for the Company following the termination. The agreement was not performed or fulfilled before its termination.
• No Material Impact on Financials: The Company confirmed that the termination is not expected to have any material adverse impact on its net tangible assets per share or earnings per share for the financial year ending 31 December 2026.
• Continued Commitment to Strategic Investments: The Board reassured shareholders of the Company’s ongoing commitment to exploring new investment opportunities as part of its Strategic Investments Business.

Details and Analysis for Investors

On 2 April 2026, the Board of Directors of Nanyang New Development Limited provided an important update regarding its earlier announcement (dated 7 February 2026) about an Investment and Shareholders’ Agreement signed on 6 February 2026. This agreement involved a proposed investment into GBPL through the subscription of new ordinary shares in GBPL.

After the agreement was entered into, disagreements arose over a change in GBPL’s business direction proposed by other parties to the agreement. As a result, after further deliberations, all parties mutually agreed not to proceed with the share subscription. A formal deed was executed on 1 April 2026, officially terminating the agreement. This deed ensures that all parties are released from any future obligations or liabilities related to the agreement or the proposed share subscription.

The Company specifically highlighted that:

• The agreement was never performed or fulfilled — no shares were subscribed, and no payments were exchanged.
• No termination penalties are payable by the Company.
• The termination is not expected to negatively impact the Group’s net tangible assets per share or its earnings per share for the current financial year ending 31 December 2026.

Importantly, the Board aimed to reassure investors regarding the Company’s strategic direction. The Company remains committed to its Strategic Investments Business and will continue to explore other investment opportunities as they arise.

Potential Impact on Shareholders and Share Price

• Price Sensitivity: The aborted investment may have been seen as a growth catalyst; its termination removes any near-term upside from this transaction. However, since no financial commitments were made and there are no penalties, downside risk appears limited.
• Continued Strategic Focus: The Company’s reaffirmation of its strategic investment focus may help support investor confidence, but the lack of new deals may result in some short-term uncertainty regarding growth prospects.
• No Material Financial Impact: The Company’s financials remain unchanged due to the non-performance and cost-free nature of the agreement’s termination. This point is reassuring for shareholders concerned about financial stability.

Other Important Information

• This announcement has been reviewed by the Company’s sponsor, ZICO Capital Pte. Ltd., but not examined or approved by the Singapore Exchange Securities Trading Limited (SGX-ST). The SGX-ST does not take responsibility for the contents of the announcement.
• The contact person for the Sponsor is Ms. Goh Mei Xian at ZICO Capital Pte. Ltd., 77 Robinson Road, #06-03 Robinson 77, Singapore 068896, telephone (65) 6636 4201.

Conclusion

While the termination of the investment and shareholders’ agreement with GBPL removes a potential short-term catalyst, the absence of any financial loss or penalties and the Company’s ongoing commitment to strategic investments should provide reassurance to existing and prospective investors. The market may react to the lack of new investment activity, but the overall risk to the Company’s financial health appears minimal.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are encouraged to conduct their own due diligence and consult with their financial advisors before making any investment decisions. The writer and publisher of this article do not accept any liability for decisions taken based on this report.

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