Ezion Holdings yesterday announced that it has entered into a supplemental agreement with the holders of its redeemable exchangeable preference shares (REPS), and its wholly owned subsidiary, Teras Investments Pte Ltd to amend the terms of the REPS:

1) the maturity of the REPS shall be extended by three years, from 10 Oct 2016 to 10 Oct 2019, and

2) no annual dividend in respect of the outstanding REPS as at the maturity date shall accrue and be payable for the period 11 Oct 2016 to the maturity date.

Recall that two firms (Evia Capital Partners and Venstar Capital Management) were the investors in the S$30m REPS in 2013. Pending more details from management, we maintain our HOLD rating but put our fair value estimate of S$0.30 under review.

Source: OCBC Research - 10 Oct 2016