Proposed RTO unlikely to be silver bullet for Dragon Group

COULD Armenian miner Coeur Gold Armenia get lucky on its third attempt to list on the Singapore Exchange through a reverse takeover?

Shareholders of struggling electronics engineering firm Dragon Group International will certainly hope so. But even if the reverse takeover deal works out, it is not clear if such a business will gain favour with investors here, especially with the scant information provided on Coeur Gold now.

Mainboard-listed Dragon Group announced on Oct 19 that it is acquiring Coeur Gold for S$500 million in shares and cash, in a reverse takeover. It has entered into a non-binding term sheet with businessman George Howard Richmond for the entire issued and paid-up share capital of Coeur Gold Armenia.