3Cnergy proposes to acquire Malaysian firm for S$64m

PROPERTY solutions company 3Cnergy, formerly known as HSR Global, is proposing to acquire a Johor Baru property firm for S$64 million as it seeks to diversify its revenue streams beyond Singapore.

The Malaysian firm, Liberty Bridge, owns 10 parcels of undeveloped land, amounting to 37.4 acres (15 hectares) in total, in Puteri Harbour in Johor Baru.

The group's largest shareholder is Icon Ventures Group, which owns a 50 per cent stake. Icon Ventures' ultimate owner is Tong Kooi Ong, who is also the non-executive chairman and deemed controlling shareholder of 3Cnergy.

Other vendors include Champion Brave (25 per cent stake), Golden Ring Worldwide (12.5 per cent) and Metra Nominees (12.5 per cent).

Liberty Bridge's book value and net tangible asset value as at Dec 31, 2015, was RM174.5 million, or S$59.77 million.

The consideration for the deal will be fully satisfied through the issuance of 955.2 million 3Cnergy shares at 6.7 cents each to the vendors. This represents a discount of about 24 per cent to the company's closing price of 8.8 cents on Monday.

3Cnergy said it will continue with Liberty Bridge's current plan to develop the land parcels into a mixed-use development with office, retail and residential elements.