Electric services company C&G Environmental Protection Holdings said it entered into a deal with India's Param Mitra Coal Resources for a S$400 million reverse takeover.
Shares in C&G Environmental Protection jumped as much as 25 percent to S$0.015 on the Singapore Exchange following the takeover news. The company develops and operates waste to energy plants in China and has environmental preservation projects like Municipal Solid Waste (MSW) and sewage treatment.
Singapore-registered Param Mitra is backed by Sindhu family, which owns India-based Sainik-Aryan Group. Param Mitra is primarily focused on mining and trading of thermal coals sourced from various coal mines in Indonesia.
The Sainik-Aryan Group is an established and vertically integrated coal energy group majority owned and managed by the Sindhu family.
Following the disposal, the "company has no ongoing business operations and shall be considered a cash company", C&G Environmental Protection said in a regulatory filing late on Thursday evening. "The board believes that the proposed transaction will provide an opportunity for the company to remain listed and to acquire a new business that has potential for growth".
The proposed takeover will have C&G Environmental Protection allotting new shares to Param Mitra Coal Resources.
Param Mitra holds 100 percent of Param Mitra Coal Resources One, Param Mitra Coal Resources Two, and Dragon Power Investments. It also owns a 76 percent stake in Unity Holding Business Singapore.
The companies have agreed to enter into discussions on an exclusive basis during the term of the term sheet, the company said.