Matex International eyeing coal assets in proposed reverse takeover deal

Mainboard-listed Matex International, a manufacturer and supplier of speciality chemicals for the textile industry, has entered into a heads of agreement with Australian-listed coal producer, Blackgold International Holdings, in relation to the proposed acquisition of its wholly owned subsidiary, Blackgold Holdings Hong Kong, for a consideration sum of S$475 million.

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Matex International eyeing coal assets in proposed reverse takeover deal

Chan Yi Wen
31 December 2014

Mainboard-listed Matex International, a manufacturer and supplier of speciality chemicals for the textile industry, has entered into a heads of agreement with Australian-listed coal producer, Blackgold International Holdings, in relation to the proposed acquisition of its wholly owned subsidiary, Blackgold Holdings Hong Kong, for a consideration sum of S$475 million.

The proposed acquisition is a reverse takeover deal.

Blackgold Holdings Hong Kong owns four underground thermal coal mines in Chongqing, China, and is evaluating a number of potential new mines.

The proposed acquisition will allow Matex to venture into the energy sector, and participate in coal mining and trading in China. It expects demand for energy, such as coal, to increase in tandem with the continuation of economic development in China.

The acquisition will also allow Matex to diversify away from its core business of speciality chemicals.

"The board expects the business of the group, being the manufacturing, formulating and sale of speciality chemicals focusing on dyestuff and auxiliaries for the textile industry, to remain competitive and challenging in the near future," it said.

Matex's counter closed at S$0.061 on Monday.

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