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Eng Wah renamed Transcu after RTO

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Singapore’s Eng Wah Organisation has completed its reverse takeover (RTO) by Japanese biotechnology firm, Transcutaneous Technologies. Worth US$660 million (S$1 billion), the publicly listed Eng Wah stock is now renamed Transcu and continues to be listed on the SGX.

ewtranscu.jpgAs part of the deal, Eng Wah sold its property interests and film distribution operation after shareholders voted favourably for the deal.

Meanwhile, Eng Wah’s shareholders, Goh Eng Wah and his daughter, Goh Min Yen, have acquired some of the property worth a total of S$99.5 million, which includes the Empress Theatre, Toa Payoh Entertainment Centre, Jubilee Entertainment Complex and the 16th floor of Orchard Towers. Other businesses were sold to the pair for S$5.5 million as well.

In the official report issued by Eng Wah, shareholders will continue to hold the same number of shares under the new Transcu, which is valued at US$660 million.

A reverse take-over is a type of merger used by private companies to become publicly traded without resorting to an initial public offering. Initially the private company (Transcu LTD) buys enough shares to control a publicly traded company (Eng Wah Organisation). The private company’s shareholder then uses their shares in the private company to exchange for shares in the public company. At this point, the private company has effectively become a publicly traded, thus Transcu Group Limited.

Eng Wah was founded in the 1940’s with shares only appearing on the stock market in 1994. Operating at present with 28 screens, Eng Wah is ranked behind Golden Village, Cathay Cineplex, and Shaw Organisation. Nonetheless, some 20 of its screens are equipped with digital technology.

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