SINGAPORE - Catalist-listed marble producer Terratech Group has lodged a circular with the Singapore Exchange about the proposed acquisition by way of a reverse takeover of Capital City Group for approximately S$300 million.
The deal will see Terratech issuing 1,071,428,569 new shares at 28 cents per share, after a proposed share consolidation which will merge every four of its existing shares into one.
The Capital City Group is an integrated property developer that enters into joint ventures with landowners to enhance the value of their assets.
Its business model does not require it to acquire or maintain land banks. Unlike conventional property developers who need to replenish their land banks for new developments, the Capital City Group maintains a steady pipeline of projects by identifying joint venture partners.
The company is now developing its maiden project, Project Capital City, a freehold integrated development in Johor Bahru.
It has also secured two new additional development projects through partnership with landowners.