UPDATE: Chow brothers plan to list on NZAX via RIS Group

UPDATE: Chow brothers plan to list on NZAX via RIS Group

(Adds comment from the Chow brothers)

By Tina Morrison

Nov. 9 (BusinessDesk) - Wellington businessmen John and Michael Chow, the property developers and brothel owners, plan to list some assets on the NZAX market by taking over shell company RIS Group.

RIS Group agreed to accept a conditional offer from trusts associated with the Chows which would see it buy the shares in the brothers' 16 Park Avenue company on Feb. 22, 2016, for about $7 million, through the issue of shares, plus $500,000, the Wellington-based shell company said in a statement. The reverse takeover would see the Chow's company own more than 90 percent of the shares in RIS Group, it said.

The agreement would spark new life into RIS Group which has restructured itself to try and attract a backdoor listing after selling its main payment systems software business Retail Information Systems in 2012. For the Chows, a listing will enable them to tap investors for funds to step up their growth plans. Chow Group's property portfolio is valued at more than $200 million, based on its website, although the brothers didn't immediately say what value of assets would go into the listed entity.

“Michael and I are committed to growing our property investments in NZ at a fast pace and to do that we need to attract capital from local and international sources," John Chow said in a statement. "Going public with our property portfolio is a natural step in our expansion plans. We are holders not sellers and we have grand plans for further expansion into the accommodation and hotel markets in New Zealand."

The agreement is conditional on the Chows undertaking further due diligence on RIS Group and on consent from their bankers, as well as RIS Group obtaining necessary approvals.

RIS Group's shares, which trade infrequently, rose 0.001 cents, or 50 percent, to 0.003 cents, valuing the company at $2 million.

(BusinessDesk)

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