SINGAPORE – Shareholders of 3Cnergy voted on Dec 26 for a $443.8 million reverse takeover (RTO) by Thai property conglomerate DTGO, transforming the Singapore-listed shell company into a major hospitality player.
At an extraordinary general meeting on Dec 26, all 19 resolutions related to the RTO, including the appointment of new directors, were approved by 3Cnergy shareholders.
The exercise essentially clears the way for DTGO, through its subsidiary DTP Inter Holdings, to inject some $443.8 million of British hotel properties into 3Cnergy.
Bangkok-based DTGO is a diversified group established in 1993 by its chairwoman, Ms Thippaporn Ahriyavraromp. Its businesses include property development, commerce and technology, design and construction, finance and investment, and entertainment and communications.
Ms Thippaporn is the daughter of Mr Dhanin Chearavanont, senior chairman of the Charoen Pokphand Group, one of Thailand’s largest companies with interests in agriculture, food and retail.
Following the shareholder nod, 3Cnergy will be renamed ProsperCap and undergo a 100-into-1 share consolidation, reducing its outstanding share base from 3.1 billion to 30.7 million shares.
It will then issue up to 1.3 billion shares at 33 cents apiece to DTP Inter Holdings.
Another 211 million new shares will be placed out to meet the Singapore Exchange’s minimum free float requirement. The $67.5 million in net proceeds from the placement will be used for repaying shareholder loans, asset enhancement, capital expenditure and general working purposes.
ProsperCap, which will be re-listed in the first quarter of 2024 on the Catalist board, will then be 85 per cent held by DTGO, with the remaining 15 per cent remaining free float.
Well-known Singapore businessman and entrepreneur Iqbal Jumabhoy, who has established and operated his own hospitality ventures in the past, will lead the new entity as chief executive and executive director.
DTGO group chief investment officer Hansa Susayan will be ProsperCap’s deputy chairman and non-executive director.
The restructured company’s 900 or so shareholders will own a stake in an investment company, which now owns 17 hotels in British cities such as Manchester, Liverpool, Bradford, Leeds, Birmingham and Glasgow. The group has no hotels in London.
The hotels, with a gross capital value (before debt) of some £600 million (S$1 billion), have a total of 3,383 rooms and are managed by global hospitality names like DoubleTree, IHG and the Marriott group.
Speaking to The Straits Times, Mr Iqbal said he was first approached by DTGO’s financial adviser, Prime Partners, to take up the job at the new entity.
“I found the plans they laid out for the new company really exciting,” he added.
“The assets under management are predominantly four-star hotels, which have a balanced mix of domestic and foreign tourists, and many business clients.
“I see an opportunity to build up the portfolio and expand beyond the UK over time.”
To fund such an expansion, Mr Iqbal envisages more capital-raising exercises some time in the future.
Asked why DTGO sought a “backdoor listing” in Singapore rather than listing outright in Bangkok, Mr Hansa said the primary reason was Singapore’s standing as a premier financial centre.
“We wanted to be part of the dynamic Singapore and international business community, and both learn and add value to the most important financial centre in Asia, whose stringent governance and stability are second to none,” he added.
Besides hotels, Mr Iqbal said the group is looking to diversify into other segments of the hospitality industry, including co-living, serviced apartments and student accommodation.
He also said that given Singapore’s reputation as home to the biggest real estate investment trust, or Reit, market in Asia, this would be an area which ProsperCap “might” explore in future.
