RH Energy has entered into two deals that will transform it from an oil and gas company into a property developer.

In the first agreement, RH will sell off its existing oil and gas business to Petchem Holdings for $36 million.

In the second deal, RH will undertake a reverse takeover of property developer Chiwayland Group (Singapore) from Sinway Investment for $399 million.

It will also perform a share and warrant consolidation, under which three of its existing shares will be consolidated into one share. Similarly, three existing warrants will be consolidated into one.

RH will then pay for the purchase of Chiwayland with $20 million in cash and by issuing up to 549.3 million new shares at 69 cents each for the remaining $379 million.

The Chiwayland Group is a property developer involved in the development, project management and sale of residential and commercial properties mainly in the Yangtze River Delta region of China.

In a statement on March 27, RH said the acquisition will give it " a new operating business with a track record and good financial fundamentals".