SINGAPORE (Jan 5): Property developer Link (THM) Holdings is planning to list through the reverse takeover of Ocean Sky International in a deal worth $226 million.

Link (THM) and its subsidiaries develop luxury landed residential, integrated mixed development, commercial and industrial properties.

Link (THM) will inject its business into the listed shell of Ocean Sky. In exchange, Ocean Sky will issue 642.8 million new shares to Link (THM) owner Tan Heng Mong and his partners and the arranger at 35.2 cents each, after the consolidation of two existing shares into one new share.

Ocean Sky closed 6.3% higher today at 13.5 cents.

The consideration shares will comprise 74.1% of the enlarged issued share capital of Ocean Sky after completion and the reverse takeover deal is subject to the approval of its shareholders.

An additional “earn-out” consideration of up to 142 million new shares could be issued to the sellers based on net profit targets achieved in FY2015 and FY2016.

“The Board is of the view that the Proposed Acquisition presents an opportunity for the Company to acquire an operating business in the property sector with a track record and growth potential,” said Ocean Sky in its regulatory filing.

The Link group of companies has a track record of more than 10 years in property development and have so far completed and sold 30 landed houses in Districts 10 and 11 with a total land area of more than 10,000 square metres.

The Link group has also completed an industrial property in Jalan Bukit Merah and residential apartments with a total strata area of 8,838 square metres.

In the Iskandar Development Region of Malaysia, the group has an integrated mixed development project called One World Medini, with an aggregate gross floor area of 444,703 square metres.

Aside from property development, the Link companies also have an investment property portfolio consisting of a number of commercial and industrial properties located in the prime business district of Singapore.