Biotech firm Transcu Group has announced that Straits Construction plans to inject its business into the struggling group in a reverse takeover (RTO) deal.
The agreement's purchase consideration is expected to be between $325 and $338 million, and will be agreed on by Transcu and Straits Construction on a "willing-buyer willing-seller" basis, the firm said on Monday.
The purchase amount will be financed by the allotment and isssuance of new and ordinary shares at 50 cents each, representing not less than 79.89% of the company's enlarged share capital, said Transcu.
Straits Construction posted a net profit of $49.5 million and revenue of $413.3 million for the 12 months to Dec 31, 2012.
Transcu incurred a US$19.5 million (S$24.7 million) loss for the three months to Dec 31 last year and is on the Singapore Exchange watchlist.
Such companies get two years to return to the black or lift their market capitalisation above $40 million, failing which they may face delisting. Straits Construction is controlled by founder and chairman Wong Swee Chun and his family.
Its projects include Casa Clementi, Singapore's largest public housing project consisting of 2,234 flats in 10 apartment blocks.
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