C&G shares up 25% on back of proposed reverse takeover

Singapore

MAINBOARD-LISTED C&G Environmental Protection Holdings' move to enter into a proposed reverse takeover (RTO) deal with India's Sainik-Aryan Group pushed its shares up on Friday.

The family-backed Sainik-Aryan Group is seeking a backdoor listing for some Indonesian coal mining assets through the proposed RTO.

The announcement drove up the shares of C&G, which closed 25 per cent or 0.3 cent higher at S$0.015 on a volume of 7.5 million on the last trading day of the year.

On Thursday night, C&G said in a filing to the bourse operator that it plans to acquire control of three mining assets in Indonesia that are expected to be valued at S$400 million or more following an independent valuation.

The vendor of the assets, Param Mitra Coal Resources Pte Ltd, will receive a number of new C&G shares priced at no less than S$0.50 per share after a planned consolidation.

Details of the proposed share consolidation have not been announced yet.

Param Mitra Coal Resources is backed and managed by the Sindhu family, which controls the Sainik-Aryan Group, a leading India-based coal, logistics and power player.

A year ago, C&G said it had sold its entire stakes in C&G Environmental Protection (Thailand) Company and C&G Environmental Protection International, turning it into a cash company.

On Thursday, the group said the proposed deal would allow it to apply for an extension of time and removal of its cash company status under listing rules.

"The board therefore believes that the proposed transaction will provide an opportunity for the company to remain listed and to acquire a new business that has potential for growth," C&G said.

The deal is still subject to due diligence, regulatory and shareholder approval.