Completion of acquisitions

    RNS Number : 1619C
  Asia Distribution Solutions Limited
  27 August 2008
   

       


    Asia Distribution Solutions Limited 
    ("ADSL" or the "Company")

    Completion of Acquisitions, Directorate Changes, Update on Possible Offer and Trading Update

    Asia Distribution Solutions Limited, ("ADSL" or "the Group"), the AIM-quoted distributor of beverages in China, today updates investors
on the following matters:
    *     Acquisition of Chengdu Gao Li Yuan Beverage Co Ltd completed

    *     Acquisition of Shanghai Run Ke Trading Co completed

    *     Completed purchase of major wine stock

    *     Appointment of Michael Kingshott as Executive Chairman

    *     Appointment of Andrew Tan to the Board of Directors as Director of Operations

    *     Offer discussions ongoing

    *     Number of HORECA (hotel, restaurant and caf outlets, including direct outlets, increased to over 3,500

    Completion of Acquisitions

    The acquisitions of Run Ke and Chengdu have now completed with the cash payments of RMB 1,750,000 (£127,718) and RMB 1,000,000 (£71,839)
respectively together with the issue of 585,938 and 89,826 shares.

    The recent purchase of a major wine stock amounting to Rmb2 million from Shi Xuan Trading (Shanghai) Co. Ltd. is to be satisfied by the
issue of 539,000 shares as payment. Shi Xuan manages and provides ADSL with approximately 300 HORECA and trade account outlets that will
sell and promote ADSL products across China.

    In relation to the above, an application has been made for a total of 1,214,764 new ordinary shares to be admitted to trading on AIM and
it is expected that admission will take place and trading will commence on 4 September 2008.

    Directorate Changes

    ADSL is pleased to announce the appointment of Michael Kingshott as Executive Chairman with immediate effect. Mr Kingshott has been the
Non-Executive Chairman of the Company since 16 September 2007.

    ADSL is also pleased to announce the appointment of Andrew Ting Koon Tan to the Board of ADSL as Operations Director with immediate
effect.  Mr Tan was formerly a General Manager of ADSL. He is 43 and was educated in Singapore and has worked in the PRC beverage industry
for over ten years. He was the founder of New Sing Xia, which was acquired by ADSL in 2007. Andrew Tan is interested in 1,039,832 ordinary
shares in the Company. There are no further disclosures to be made regarding this appointment under the AIM Rules.

    Update on Possible Offer

    The Company updates investors that, further to the announcement of 16 July 2008, it remains in discussions with a third party which may
or may not lead to an offer being made for the Company.

    Trading Update

    ADSL now services over 3,500 on-trade and retail outlets in China. The Company has entered into additional agreements for the supply of
wine products as well as for the supply of the Company's private label beverages at affordable prices into the ever expanding market within
China, and an encouraging start has been made with these products. 

    The Company has continued to make good progress with its strategy to broaden the scale of operations and to accelerate the growth of its
business, particularly in the field of private label, and it is anticipated that this will provide a stronger platform in driving the
business forward. Our plan to become the local distributor of choice is on course.  We intend to replicate this model in further major
population centres in China as the opportunities arise.


    For further information please contact:
    Asia Distribution Solutions Limited
    Michael Kingshott, Executive Chairman               [phone]
    Steve Wong, Managing Director                           [phone]        
    Evolution Securities China Limited    
    (Financial adviser and broker)
    Barry Saint                                                             [phone]            
    Armen Ho                                                               [phone]          
    Evolution Securities Limited
    (Nominated adviser)
    Jeremy Ellis                                                            [phone]            
    ADSL website 
    http://www.asiadistributionsolutions.com/

    END

This information is provided by RNS
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