SINGAPORE (April 1): Jaya Holdings has entered into a non-binding term sheet for the proposed acquisition of the entire equity interest in Heduru Moni for about $237.6 million.

It is buying Heduru Moni from Bernard Chan, Tan Siew Ann Jason, Lee Chan Beng, David John Kelso and Gajanan Pandurang Barve.

The purchase consideration shall be satisfied by the allotment and issuance of new shares in the issued and paid-up capital of Jaya to the sellers, Jaya says, adding that acquisition, when completed, is expected to result in a reverse takeover of the company.

An initial consideration of about $178.2 million - about nine times the net profit after tax of Heduru Moni for FY2015 - shall be paid on completion of the deal. This shall be satisfied by the issue of about 297 million new shares in the capital of Jaya at the issue price of 60 cents per share.

Papua New Guina-incorporated Heduru Moni is a financial institution licensed and regulated by the Bank of Papua New Guinea. Based in Port Moresby, Heduru Moni is the largest micro-lender in Papua New Guinea providing personal loans, asset financing, term deposits and foreign currency payments.

Jaya Holdings last traded at 39.5 cents on March 31.