Hatten Land, which is under judicial management, is acquiring a construction business in a reverse-takeover deal worth $24 million.
The developer, known for its Malacca developments, plans to pay for the acquisition of Metrocon by paying its owner, LBD Engineering, some 5.57 billion new shares.
If this deal goes ahead, LBD Engineering, a building contractor, will end up owning around 60% of Hatten Land.
The target business, Metrocon, is in general building construction, including piling and major upgrading works.
It has a paid-up capital of $18 million and as at Sept 30, an unaudited book value and net tangible asset value of $7.38 million each.
In the most recent 9MFY2025, Metrocon generated earnings of $1.98 million and revenue of $41.3 million.
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Hatten Land has appointed Navi Corporate Advisory to do an independent valuation and the final consideration might be subject to further adjustments.
Hatten Land shares have been suspended from trading since last August and in the same month, put under the judicial management of Deloitte Singapore SR&T Restructuring Services.
"The judicial managers are of the view that the proposed acquisition will enable the company to venture into a business area that has potential for growth, and the opportunity to engage with its creditors to restructure and reorganise its financial position," reads Hatten Land's Nov 21 SGX filing.
Separately but in conjunction, following a creditors' meeting on Oct 31, the judicial managers were given the go-ahead to place a Hatten Land subsidiary, Hatten MS, into liquidation.
