3Cnergy shareholders to vote on $443.8 million deal with DTP Infinities on Dec 26
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Following the reverse takeover deal, the enlarged group, to be renamed Prosper Cap Corporation, will be led by Mr Iqbal Jumabhoy.
PHOTO: COURTESY OF IQBAL JUMABHOY
Vivienne Tay
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SINGAPORE – Catalist-listed 3Cnergy on Dec 7 said it will seek shareholders’ approval at an extraordinary general meeting on Dec 26 for its reverse takeover deal involving British hospitality player DTP Infinities.
3Cnergy plans to acquire DTP Infinities for $443.8 million from DTP Inter Holdings, to be satisfied through allotting and issuing new shares. The actual consideration will be dependent on the updated net valuation and net debt of DTP Infinities and its subsidiaries.
The enlarged group, to be renamed Prosper Cap Corporation, will be led by Mr Iqbal Jumabhoy from the famed Jumabhoy family. He will take on the role of chief executive and executive director, and work alongside a new board of directors.
As part of the proposed deal, 3Cnergy will consolidate every 100 existing shares into one consolidated share to reduce outstanding shares to 30.7 million from 3.1 billion. It will then issue up to 1.3 billion new shares at 33 cents apiece to DTP Inter Holdings for the purchase of DTP Infinities.
Up to 211 million new placement shares will also be issued to meet the minimum free-float requirement, raising net proceeds of around $67.5 million. This amount will be used to repay shareholder loans and fund asset enhancement and capital expenditures, as well as for general working capital purposes, 3Cnergy noted.
DTP Infinities owns a portfolio of 17 mostly upscale hotels in Britain – two in Scotland and the remainder in England. The assets are managed by Valor Hospitality Europe and operated under franchise agreements with hotel brands such as Hilton, IHG and Marriott.
For the six months ended June 30, the hospitality player posted a net profit before tax of £27.8 million (S$46.8 million) from a net loss before tax of £11 million in the year-ago period. Revenue, meanwhile, rose 17.4 per cent to £68 million from £57.9 million in the same period in 2023.
Shares of 3Cnergy closed up 200 per cent at 0.3 cent on Dec 8. THE BUSINESS TIMES
