Matex International eyeing coal assets in proposed reverse takeover deal
MAINBOARD-LISTED Matex International, a manufacturer and supplier of speciality chemicals for the textile industry, has entered into a heads of agreement with Australian-listed coal producer, Blackgold International Holdings, in relation to the proposed acquisition of its wholly owned subsidiary, Blackgold Holdings Hong Kong, for a consideration sum of S$475 million.
The proposed acquisition is a reverse takeover deal.
Blackgold Holdings Hong Kong owns four underground thermal coal mines in Chongqing, China, and is evaluating a number of potential new mines.
The proposed acquisition will allow Matex to venture into the energy sector, and participate in coal mining and trading in China. It expects demand for energy, such as coal, to increase in tandem with the continuation of economic development in China.
The acquisition will also allow Matex to diversify away from its core business of speciality chemicals.
"The board expects the business of the group, being the manufacturing, formulating and sale of speciality chemicals focusing on dyestuff and auxiliaries for the textile industry, to remain competitive and challenging in the near future," it said.
Matex's counter closed at S$0.061 on Monday.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Higher gross rental income, lower expenses boost CICT’s Q1 NPI by 6.3% to S$293.7 million
Stocks to watch: CICT, Seatrium, Keppel DC Reit, UOB
Keppel DC Reit reports 13.7% lower Q1 DPU of S$0.02192
Netflix handily beats subscriber targets, misses on revenue forecast
Meta releases early versions of its Llama 3 AI model
Seatrium unit ordered to pay US$108 million in arbitration over equipment supply contracts