OPTION 3:
The existing shareholder of the Company must subscribe for all of the newly issued shares of the Company and, thereafter, sell all of such newly issued shares to the Potential New Shareholder at cost.
However, it is important to note that a Cabinet’s resolution and/or governmental approval may be required for NEDA or FERD (as the case may be) to subscribe to all the newly issued shares.
In addition, Section 11055 of the CCC requires that the initial payment for the shares must not be less than 25 percent of the share value. NEDA and/or FERD (as the case may be) will be required to inject at least 25 percent of the capital increase to the Company.
Please see Attachment 3 for a detailed process on how to carry out this option.