Straits Construction to stage reverse takeover of mainboard-listed Transcu

Construction firm Straits Construction has inked a deal to stage a reverse takeover of struggling mainboard-listed biotech firm Transcu Group, Transcu said in a statement on Wednesday.

It declined to reveal the value of the deal.

Straits Construction raked in revenue of $413.3 million and net profit of around $49.5 million for 2012, according to the latest available data from the Accounting and Corporate Regulatory Authority.

Transcu said that the deal would give it a "new lease of life via an entity with a proven track record, in an industry with potential for growth".

It was put on the Singapore Exchange (SGX) watchlist in December last year, two months after it said it was getting rid of its transdermal pharmaceutical devices and cosmetics businesses. The company planned to focus only on its green technology business due to "persistent liquidity issues".

The SGX watchlist is for mainboard-listed companies with three years of losses and whose market capitalisation over the previous 120 days has fallen below $40 million.

Companies on the watchlist have two years to return to the black or lift their market capitalisation above $40 million, or they may face delisting.

Straits Construction is controlled by its founder and chairman Mr Wong Swee Chun and his family. His son Mr Wong Chee Herng is its managing director.

Its projects include Casa Clementi, Singapore's largest public housing project consisting of 2,234 flats in 10 apartment blocks.