Cedar Agrees to S$936.2 Million Takeover With Chinese Developer
Cedar Strategic Holdings Ltd. (CED) agreed to a S$936.2 million ($742 million) reverse takeover transaction with a Chinese developer to expand its property business in the world’s second-largest economy.
Cedar, based in Singapore, will issue 46.8 billion new shares to the owner of Trechance Holdings Ltd., a Hong Kong investment holding company. Trechance and its units, which make up the Hua Cheng Group, has completed more than 12 property projects and has an area of about 4.9 million square meters of land for development, according to the statement.
“This catalytic transaction will successfully transform the group into a significant regional property player,” Charlie In, executive chairman of Cedar Strategic, said in the statement. “The acquisition of Hua Cheng’s property businesses complements our current property portfolio in Singapore, and is expected to generate stable income revenue streams going forward.”
Hua Cheng’s projects are mainly in the Guizhou province, bordering the southern part of Sichuan. The proposed acquisition will result in a “very substantial acquisition” or “reverse takeover” of the company, Cedar said in a statement to the Singapore stock exchange, citing local listing rules.
Cedar appointed Jones Lang LaSalle Corporate Appraisal and Advisory Ltd. to conduct an independent valuation, it said.
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