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Hot stock: C&G Environmental shares surge 25% after reverse takeover proposal
SHARES of mainboard listed C&G Environmental Protection Holdings rose 25 per cent in early trading following a proposed reverse takeover deal with the family behind India's Sainik-Aryan Group, which is seeking a backdoor listing for some Indonesian coal mining assets.
The counter climbed 0.3 Singapore cent to S$0.015, on a volume of 3.4 million at 9.34am.
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.
C&G, now a cash company, had said the move would "provide an opportunity for the company to remain listed and to acquire a new business that has potential for growth".
The deal is still subject to due diligence, regulatory and shareholder approval.