Catalist-listed Resources Global Development (RGD) announced in a bourse filing on Dec 26 that it has completed the acquisition of Draco Investment Holdings for US$1($1.3) million from Southeast Earnest Investment (SEI). The purchase consideration was arrived at on a willing-seller, willing-buyer basis.
As SEI is a wholly-owned subsidiary of Deli International Resources (DIR) which holds 75% interest in RGD, the transaction is an interested person transaction under Chapter 9 of the Catalist Rules, according to an earlier Dec 24 announcement.
After the acquisition, RGD will own an effective interest of 49.73% in four coal mining companies. Prior to the deal’s completion, Draco held an effective stake of 40% in four coal mining companies while RGD held 9.73%.
RGD says that the acquisition provides exposure to operating assets with near-term revenue and cash flow potential and will "increase its share of earnings while improving overall financial performance". It points out that two of the coal mines have progressed beyond the greenfield stage and commenced coal production, reducing development and execution risks for RGD.
In addition to Draco becoming a wholly-owned subsidiary of RGD, the purchase consideration of $1.3 million has become a non-interest bearing and unsecured amount due from the RGD to SEI and repayable solely at the option and discretion of RGD.
RGD has also procured Draco to issue a promissory note to SEI to restate the terms of a loan — approximately $14.2 million — by SEI to Draco. This loan is now non-interest bearing and unsecured and is repayable solely at the option and discretion of Draco.
According to the Dec 24 filing, Draco suffered a net loss of approximately $432,700. Its book value and net asset value was approximately $552,300 as at 30 June 2025.
On a pro-forma basis for FY2024 ended Dec 31, net tangible asset per share of RGD decrease 0.1 cents, or 0.8%, from 13 cents to 12.9 cents. Earnings per share remains the same at 2.1 cents. Meanwhile, for the half-year ended June 30, RGD’s net profit attributable to the assets acquired or disposed of, compared with the Group's net profits, decreases by 3%.
In an earlier interview with The Edge Singapore, RGD’s CEO Francis Lee says that the company’s business stands on two pillars — coal mining and coal shipping.
