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Changjiang in Tagore 8 RTO deal
CHANGJIANG Fertiliser Holdings is eyeing the acquisition of a 50 per cent interest in Chiu Teng 8 Pte Ltd (CT8), the owner of Tagore 8, from CTE Resources under a deal that will constitute a reverse takeover under SGX rules.
The deal involves the acquisition of 500,000 ordinary shares of CT8 for a total consideration of S$9,674,288.
Changjiang will issue over 580 million shares to CT8 on completion of the acquisition and pay over S$6.7 million in cash to CTE Resources for the 50 per cent stake in CT8, subject to terms and conditions of the acquisition agreement.
CT8's shareholders are CTE Resources on 50 per cent, Affluence Resource on 40 per cent and Chiu Teng Construction Co Pte Ltd on 10 per cent.
In 2011, CT8 acquired a freehold site with a gross site area of approximately 143,310 square feet located along Tagore Industrial Avenue and commenced the development and construction of a light industrial building, Tagore 8.
Tagore 8 received its certificate of statutory completion on Sept 2, 2015. It is a freehold development classified as a B1 light industrial ramp-up property.
Since Tagore 8 was launched for sale in 2012, 110 units have been sold. As at the date of this announcement, 18 units, amounting to an aggregate gross floor area of 40,591 square feet, are unsold.
CT8 has a sales and marketing agreement with various real estate agencies to market units in Tagore 8 for sale.
For FY15, CT8 posted a profit after tax of S$20.7 million on a revenue of S$169.8 million.
The proposed acquisition of CT8 which is expected to be completed no later than Oct 1, 2016, will be subject to, among others, the approval of SGX and Changjiang's shareholders.
CTE Resources and its nominees shall also hold not less than 19.88 per cent of the enlarged issued and paid-up capital of Changjiang.