Memstar in RTO deal with China firm

Singapore

MEMSTAR Technology - a cash company after selling its membrane manufacturing business to United Envirotech - has entered into a US$420 million reverse takeover deal with the owners of Longmen Group, a China-based developer of unconventional natural gas.

Memstar is proposing to acquire Longmen through the issue of new shares to the vendors. On completion, the vendors of Longmen will own 73.1 per cent of Memstar, marking a backdoor listing for Longmen.