A group of Indonesian mining companies are staging a reverse takeover of Singapore mainboard-listed China Bearing.
China Bearing told the Singapore Exchange on Monday night that it has struck a deal to acquire PT Vasco Nusantara, PT Millennium Danatama Resources and PT Millennium Mining and Resources.
These three firms are controlled by Mr Lim Tahir Ferdian and his family. Mr Lim Tahir Ferdian is also the founder of Indonesian brokerage PT Millenium Danatama Sekuritas.
A reverse takeover is a deal in which an unlisted business is effectively injected into a struggling listed company - China Bearing, in this case - via the issue of shares in return for cash.
The three Indonesian firms hold licences for iron ore mines in Indonesia. The deal will only go through if their assets are collectively valued at at least $100 million, China Bearing said.
China Bearing will acquire the firms for their exact valuation amount, to be determined by an independent valuer.
It will pay for them by issuing its shares to Mr Lim Tahir Ferdian's family at a price of five cents per share, subject to approval from shareholders at an extraordinary general meeting.
China Bearing shares were 0.3 cents higher at 3.9 cents at 11.40am on Tuesday.