TEHO Development signed a letter of intent to acquire ECG Property Services for $17 million yesterday.
The proposed acquisition will allow TEHO Development to expand its operations in the property industry. It will also include the operations of the ECG Group which are currently not undertaken by TEHO.
TEHO’s Executive Chairman and CEO Lim See Hoe (pictured, right) said, “The Proposed Acquisition will allow TEHO to tap on the expertise of the ECG Group in the property market and achieve better operational synergies through the marketing of any current and future property development projects that TEHO will be embarking on.”
The group intends to enter into a proposed joint venture in Cambodia to engage in real estate development and investment there. With the acquisition, TEHO will have a fuller range of property services to undertake the joint venture.
TEHO Development is a subsidiary of TEHO International, a diversified group with interests in the Marine, Offshore Oil & Gas and Property industries.
The proposed acquisition also marks TEHO’s second partnership with Eric Cheng (pictured, left), CEO of the ECG Group of Companies, after it acquired TIEC Holdings in May this year. TIEC Holdings was ECG’s property development arm.
ECG currently holds 100 percent of ECG Consultancy and ECG Property. ECG’s business in real estate includes consultancy, management, real estate agencies, valuation services and other real estate activities.
The acquisition will not an impact on Cheng’s role at ECG.
The total consideration of $17 million will be paid by way of a combination of cash and shares.
Photo by Muneerah Bee
Muneerah Bee, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
