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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.