SOURCE: Providential Holdings, Inc.

December 04, 2006 09:15 ET

Providential Holdings Subsidiary Signs LOI to Acquire Grocer Enterprise

Provimex to Become a Separate Public Company to Consolidate Stand Alone Supermarkets Serving Multi-Ethnic Communities

LOS ANGELES, CA and HO CHI MINH CITY, VIETNAM -- (MARKET WIRE) -- December 4, 2006 -- Providential Holdings, Inc. (OTCBB: PRVHE) (German Stock Exchanges: PR7, WKN 935160), a provider of international advisory services specializing in mergers and acquisitions, announced today that its majority-owned subsidiary Provimex, Inc. has signed a letter of intent to acquire Grocer Enterprise, Inc., a supermarket serving multi-ethnic communities in Southern California.

The closing of this transaction, scheduled to occur by the end of 2006, is subject to satisfactory due diligence review and the signing of a definitive agreement by both parties.

David Le, president and CEO of Provimex, said, "We intend to use Grocer Enterprise as a platform to acquire and consolidate stand alone supermarkets that serve multi-ethnic communities in California and eventually in other states. Provimex will complete the financial audits and file a registration statement to become a separate fully reporting public company to create value and liquidity for shareholders who have received our Provimex share dividends in the past."

As the majority shareholder, Providential Holdings expects to consolidate approximately $5.2 million from Grocer Enterprise's annual revenues following the completion of the contemplated transaction.

About Provimex

Provimex, a Providential Holdings company, is an international market development company that focuses on international trade, foreign-based manufacturing development, real estate development and educational training for developing countries. Provimex was founded to create and execute new ideas with an international team of trading experts, market specialists, technologists, attorneys, economists, educators and financial executives to respond to the explosive growth in international markets today. For more information, visit http://www.provimex.us.

About Providential Holdings, Inc.

Providential Holdings and its subsidiaries engage in a number of diverse business activities, the most important of which are M&A advisory services and independent energy. The company acquires and consolidates special opportunities in selective high-growth industries to create additional value, acts as an incubator for emerging companies and technologies, and provides financial consultancy and M&A advisory services to U.S. and foreign companies. As part of its activities in Vietnam, Providential has been hosting seminars in conjunction with the Nasdaq Stock Market, the Vietnamese Chamber of Commerce and Industry and a leading U.S. investment banking firm to help Vietnamese companies go public and raise capital through the U.S. financial markets. For more information on Providential Holdings and its subsidiaries, visit http://www.phiglobal.com.

A profile for investors can be accessed at http://www.hawkassociates.com/prvhprofile.aspx.

For investor relations questions regarding Providential, contact Frank Hawkins or Julie Marshall, Hawk Associates, at (305) 451-1888, e-mail: info@hawkassociates.com, or visit http://www.americanmicrocaps.com or http://www.hawkassociates.com

Safe Harbor: This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.

Contact Information

  • Investor Relations Contact:
    Hawk Associates, Inc.
    Frank N. Hawkins, Jr. or Julie Marshall
    Phone: (305) 451-1888
    E-mail: Email Contact