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Mongolia’s Tengri Coal and Energy

acquired by Singapore’s QT Vascular

MONGOLIA THE Business Times has reported that QT subsidiaries—recorded net losses before tax of
Vascular (QTV) is looking to acquire the entire about $516,000 in 2019, net liabilities attrib-
interest in Mongolia-focused Tengri Coal and utable to shareholders of about $2.2mn, and a
Energy (TCE) for $1bn in cash and new shares. net tangible liability value of about $2.3mn as
If the deal is completed it is expected to result at December 31, 2019. These figures are based
in a reverse takeover (RTO) of QTV, it said in a on the group’s unaudited consolidated financial
bourse filing on August 23. statements as at Dec 31, 2019.
Conditions precedent include QTV dispos- However, the target group’s financial state-
ing of all its existing assets and liabilities so that ments have not taken into account the actual
it will become a shell company into which TCE valuation of TCE’s assets, which will be based on
can be injected. Singapore-incorporated TCE’s an independent valuation to be commissioned
wholly-owned operating entities are Tengri Pet- and completed before the EGM, QTV said.
rochemicals and Tsaidam Energy. The independent valuation will take into
TCE was a subsidiary of Tengri Holdings account all permits and licences to mine half a
(Singapore) PTE. LTD., incorporated on 23 billion tonnes of coal located in the middle of
November 2012. It runs financing and mining Mongolia near major infrastructure; all designs,
operations predominately in Mongolia. permits, and licences to build and operate a
Tengri Petrochemicals holds mining licences 600-megawatt (MW) coal-fired power plant;
issued for mine coal deposits in Bayan soum, Tuv and all designs, permits, and licences to build
province in Mongolia, while Tsaidam Energy and operate the required electricity transmission
holds licences to construct power plants and infrastructure.
energy facilities in the country. Previously, the international Millennium
QTV’s board of directors said the RTO will Mining Corp. (IMMC) and Phoenix Capi-
give the company “a new lease of life” and could tal Enterprises Ltd. (PCE) entered into a share
potentially increase its market capitalisation. purchase agreement for TCE in 2018. How-
The proposed acquisition provides an oppor- ever, IMMC and PCE on January 10 agreed to
tunity for QTV to venture into a new business terminate their agreement to complete a busi-
area in the coal and energy industry in Mongolia, ness combination and RTO, which would have
which has potential for growth and “significant resulted in IMMC acquiring all of the issued and
potential upside”, the board added. outstanding common shares of TCE in exchange
The target group—including TCE and its for issued common shares of IMMC™

Week 34 26•August•2020 www. NEWSBASE .com P7