Lankom Electronics, which was recently included in the watch-list of the Singapore Exchange (SGX), has proposed purchasing two property firms in a $586-million reverse takeover (RTO) deal.
Lankom will buy Modena Property Development and Newage Investment Holding under a signed conditional agreement. The two companies have five high-end properties in Jakarta – two hotels and three office buildings.
Lankom will issue 9.8 billion new shares at six cents per share to the sellers, Central Basic Corporation and Creative Property Development. The two firms are private investment companies incorporated in the British Virgin Islands.
Upon completion of the deal, the vendors will hold 99.1 percent of the enlarged issued share capital of Lankom.
The deal is conditional upon approval from SGX, as well as from the shareholders of Lankom. Lankom added that the two shareholders who jointly own 48.8 percent of its issued share capital have agreed to vote in favor of the acquisition.
Lankom also said that it plans to conduct a placement exercise of vendor and/or new shares, as the deal’s free float will not meet the requirements of SGX once it is completed.