M Development inks pact to buy Antai Mining International in RTO deal

M DEVELOPMENT has entered into a sale and purchase agreement to acquire the entire stake in Antai Mining International, the investment holding firm said on Friday night. 

Antai Mining International operates a marble mining business in China, while the vendors are Jovial Bridge, Cypress Top and Prime Kirin.

If undertaken and completed, the proposed transaction is expected to result in a reverse takeover, and will be subject to the approval of M Development's shareholders.

The cost of the acquisition has yet to be revealed. Among other conditions, the company will have to complete a full due diligence review of Antai Group no later than Feb 29, and complete the valuation of Antai Group by April 30. 

Zico Capital has been appointed as financial adviser for the proposed deal, while RSM Chio Lim LLP has been appointed as reporting accountant, and Drew & Napier LLC has been appointed as legal adviser.

As the company requires more time to finalise information relating to the vendors, Antai Group and the proposed deal, information including the latest three years of pro-forma financial information on the target company will be announced "in due course", M Development said. 

Shares in M Development have been suspended and last traded in September 2017.