Sapphire buys rail infrastructure firm for 360m yuan in turnaround strategy
LOSS-MAKING Sapphire Corporation on Tuesday announced it plans to acquire a China-based engineering, procurement and construction (EPC) business for 360 million yuan (S$75.9 million).
This is part of its corporate turnaround strategy to grow via railway infrastructure and engineering projects, after disposing of its loss-making steel business.
The company has entered into a conditional deal to buy Hong Kong-incorporated Ranken Infrastructure via an issue of new Sapphire shares worth S$16.5 million at S$0.10 each.
This will be issued to all 34 individual owners of Ranken, followed by a subsequent capital injection of 282 million yuan.
Ranken, based in Beijing and Chengdu, is China's second largest privately-owned rail transport infrastructure construction group. Its clients are mostly state-owned enterprises and Fortune-500 companies in China. It has also executed the second-largest railway infrastructure project in Bangladesh and other major jobs in India.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Oil settles higher on supply concerns in the Mid-East, economic woes subdue gains
S-Reits falter as investors weigh possibility of zero rate cuts in 2024
CapitaLand Investment posts total revenue of S$650 million for Q1
Europe: Stoxx 600 logs best day in three months as banks shine
US: Stocks rally after strong tech results
Porsche posts Q1 profit drop on ramp-up costs