05 Feb 2016
Injection by Koh Brothers Group Limited of construction arm into Koh Brothers Eco Engineering Limited
Goh Kian Hwee, Lawrence Tan, Gwendolyn Tan and Alina Tan from the Capital Markets / Mergers & Acquisitions Practice Group are acting for Koh Brothers Group Limited (“KBGL” and together with its subsidiaries, the “KBGL Group”) and its subsidiary, Construction Consortium Pte. Ltd. (the “Vendor”) in the sale by the Vendor of the entire issued ordinary shares in the capital of Koh Brothers Building & Civil Engineering Contractor (Pte.) Ltd. (“KBCE”) to Koh Brothers Eco Engineering Limited (“KB Eco”), for a consideration of S$19,011,000 to be satisfied through the issuance of new KB Eco shares (the “Transaction”).
KBGL is listed on the Main Board of the Singapore Exchange Securities Trading Limited (the “SGX-ST”) and is the ultimate parent company of the Vendor and KBCE. KBGL also holds approximately 41.0% of the total issued shares in KB Eco, which is listed on the Catalist board of the SGX-ST. The core businesses of the KBGL Group comprise (a) construction, (b) building materials, (b) real estate and (c) leisure and hospitality.
The Transaction would, amongst others, enable the KBGL Group to leverage on the synergies resulting from the consolidation of the building construction and civil engineering capabilities of KBCE with the engineering, procurement and construction capabilities of the KB Eco group, and create a better platform to grow the KBGL Group’s construction business, including the further exploration of opportunities in water and wastewater treatment and hydro-engineering.