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Cedar Strategic announces proposed stake in US$694m Golden City project
CEDAR Strategic Holdings (CSH) on Monday announced that it has entered into a sale-and-purchase agreement, under which it will acquire all of the issued and paid-up shares of DAS for approximately US$24.9 million.
DAS currently holds a 70 per cent controlling stake in Uni Global Power Pte Ltd, which in turns owns a 70 per cent stake in the developer of Golden City, a US$694 million mixed-use luxury development project in Yangon, Myanmar.
The total consideration of US$24.9 million will give CSH a 49 per cent effective stake in the Golden City project.
Thiam Hee Tan, executive director and chief executive officer of CSH, said: "Staying aligned to the group's growth strategy that focuses on development and investment properties in emerging countries, we have earmarked the acquisition of DAS to be our gateway to Yangon's luxury real estate market."
In a separate announcement, CSH said that Luo Shandong, a controlling shareholder of CSH who holds some 4.3 billion shares (27.7 per cent) in the capital of the company, has agreed to grant the firm a loan of an aggregate principal amount of up to US$5 million. CSH said it intends to use the loan to supplement its cash resources for the proposed acquisition of DAS.
CSH, at about 2.31pm on Monday, requested for the lifting of a trading halt in its shares, which it had requested for on Friday "pending the release of an announcement".