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Terratech signs RTO deal with Malaysia's Capital City Property (Amended)
LOCAL marble producer Terratech Group has signed a conditional sales and purchase agreement (SPA) with Malaysian property developer Capital City Property for a proposed acquisition of the Malaysian firm.
Terratech will acquire the entire issued and paid-up capital of Capital City for S$300 million, which will be satisfied by the issuance of 4.29 billion shares at an issue price of seven Singapore cents per share, the Catalist-listed firm said in a Singapore Exchange filing on Thursday.
The deal is expected to result in a reverse takeover, with Capital City aiming for it to conclude at the end of this year or early next year, its founder and executive director Siow Chien Fu told The Business Times.
Added the architect-turned-developer: "It was very natural for us to come into Singapore, it being an international financial hub and us being just next door, and the exposure to the world is good."
The Malaysian developer's sole project comprises Project Capital City, an integrated entertainment, retail, hospitality and residential development in Tampoi, Johor Bahru.
Located on 10 acres of land, the project will consist of a six-storey mall along with two hotel and service suite towers and three towers of serviced apartments with a planned total of 1,635 units when completed.
Construction is underway and the first phase of the project will see the mall being launched in the first half of 2018, Mr Siow added.
The hotel and service suites will be launched separately at a later date.
Amendment note: An earlier version of this article incorrectly stated that Capital City has a 50 per cent stake in Project Capital City. The article above has been revised to reflect this.