Longcheer to buy 51% stake in Puteri Cove Residences

SINGAPORE-LISTED Longcheer Holdings said on Friday that it has entered into a memorandum of understanding (MOU) with Pacific Star Development to acquire the latter's 51 per cent interest in Puteri Cove Residences for S$120 million-S$150 million in a cash-cum-shares transaction.

The other 49 per cent interest of the development project in Puteri Harbour, Iskandar Malaysia, is still held by boutique developer DB2 Group.

Longcheer, a Chinese mobile handset design solutions company, said in a regulatory filing on Friday that it agreed to acquire 51 per cent of Twin Prosperity Group and its subsidiaries that hold the entire issued share capital of Tropical Sunrise Development (TSD).

The latter owns Pearl Discovery Development Sdn Bhd, which is the registered proprietor of the land and buildings of Puteri Cove Residences.

Longcheer said the long-stop date for the terms and conditions of the definitive agreement to be agreed upon is on or before Dec 31, 2015, or other date as agreed by the parties involved.

The agreed payment should be made by Longcheer via the issuance and allotment of new shares and cash.