C&G in reverse takeover of Param Mitra

Mainboard-listed C&G Environmental Protection Holdings has entered into a reverse takeover deal valued at $400 million that will give Indonesia's Param Mitra Coal Resources (PMCR) a backdoor listing on the Singapore Exchange (SGX).

C&G will fully acquire PMCR's assets, which are focused on the coal mining, logistics and trading of thermal coal sourced from various coal mines in Indonesia, in exchange for $400 million of new C&G shares at 0.8182 cent per share, based on C&G's current number of shares.

C&G will first undertake a 100-to-1 share consolidation before issuing the consideration shares. Post-consolidation, it will issue to PMCR about 488.88 million new shares at 8.182 cents apiece.

PMCR is owned by the Param Mitra Group, which has coal mining operations in India, Australia, Indonesia as well as Myanmar.

PMCR's assets of Param Mitra Coal Resources One, Param Mitra Coal Resources Two, Dragon Power Investments and Unity Holdings Business Singapore have mining rights over concession areas covering 7,243ha.

C&G said the proposed transaction would allow it to apply to the SGX for an extension of time and removal of its cash company status, and believes the proposed transaction will provide an opportunity for the company to remain listed.

C&G had earlier sold its entire stake in C&G Environmental Protection (Thailand) Company and C&G Environmental Protection International, turning it into a cash company.

A version of this article appeared in the print edition of The Straits Times on June 06, 2018, with the headline 'C&G in reverse takeover of Param Mitra'. Print Edition | Subscribe