Hatten Land shareholders approve $28m Metrocon takeover

The reverse takeover will give the geotechnical engineering firm a listing on SGX Catalist upon completion.

Hatten Land shareholders have approved the proposed $28m acquisition of Metrocon, a transaction classified as a reverse takeover under SGX Catalist rules.

Upon completion, Hatten Land, which is under judicial management, will be renamed Metrocon Holdings Limited. The enlarged group will focus on geotechnical foundation engineering.

All 20 ordinary resolutions and two special resolutions related to the transaction were passed at an extraordinary general meeting on 22 July.

Following a share consolidation, the acquisition will be paid through the issuance of approximately 107.7 million consideration shares to Metrocon’s vendor, LBD Engineering, at $0.26 per share.

Hatten Land will also issue about 22.4 million shares to scheme creditors and 21.5 million shares to funders at $0.26 each as part of its restructuring.

The company plans to place up to 25 million additional shares at a price of no less than $0.20 per share to meet the minimum public float requirement.

Proceeds from the placement will be used to support Metrocon’s planned upgrade from BCA Grade L5 to L6 under the piling works category, expand its workforce and pursue other business opportunities.

Metrocon provides foundation, earth-retaining structure and ground-improvement services for public housing and other public-sector construction projects.

The company’s revenue increased 67.5% to $61.07m in FY2025 from $36.47m a year earlier. Gross profit rose to $6.96m from $2.46m, whilst its gross margin improved to 11.4% from 6.7%.

Net profit increased to $4.2m from $550,000. As of 15 June, Metrocon had an order book of approximately $85.25m, which is expected to be recognised over the following 24 months.