Key Points of the Transaction

• Completion Date: The proposed acquisition of Draco Investment Holdings Pte. Ltd. was successfully completed on 26 December 2025.
• Acquisition Details: Resources Global Development Limited (“RGD”) acquired all the issued and paid-up shares of Draco Investment Holdings Pte. Ltd. from Southeast Earnest Investment Pte. Ltd. (“Seller”).
• Wholly-Owned Subsidiary: Draco Investment Holdings Pte. Ltd. is now a wholly-owned subsidiary of Resources Global Development Limited.
• Consideration Payment Terms: The consideration for the acquisition is now recognized as a non-interest bearing and unsecured amount due from RGD to the Seller, with repayment solely at the discretion of RGD.
• Promissory Note Issuance: RGD has arranged for Draco Investment Holdings to issue a promissory note to the Seller, restating the terms of an existing loan (US\$11,020,674, equivalent to approximately S\$14.2 million).
• Loan Terms: The US\$11 million loan is now a non-interest bearing and unsecured loan, repayable solely at the discretion of Draco Investment Holdings.

Shareholder Considerations & Price-Sensitive Information

• Control and Expansion: The immediate result of the acquisition is that RGD has strengthened its control and expanded its portfolio by making Draco Investment Holdings a wholly-owned subsidiary. This may signal future strategic developments and integrations within the Group.
• Financial Flexibility: Both the acquisition consideration and the US\$11 million loan are now non-interest bearing and unsecured, with repayment at the discretion of RGD and Draco Investment Holdings, respectively. This structure provides significant financial flexibility, which could improve liquidity and capital management for the Group.
• Potential Impact on Share Price: Investors should note the completion of the acquisition and the favorable financing terms, as these developments could positively influence investor sentiment, financial ratios, and future earnings potential.
• No Immediate Cash Outflow: The non-interest bearing and discretionary repayment terms mean the company does not face imminent cash outflows, which can be supportive for short-term financial stability.

Additional Details for Investors

• The announcement was made by Francis Lee, Executive Director and Chief Executive Officer of Resources Global Development Limited, reinforcing the importance of the transaction at the highest management level.
• The transaction has been reviewed by the company’s sponsor, ZICO Capital Pte. Ltd., but has not been examined or approved by the Singapore Exchange Securities Trading Limited (SGX-ST).
• All conditions precedent to the acquisition have been fulfilled or waived, ensuring regulatory and contractual compliance.
• Shareholders and potential investors should monitor future announcements for integration progress, strategic plans involving Draco Investment Holdings, and any further financial disclosures.

Conclusion

The completion of the acquisition and the associated financial arrangements represent a significant strategic move for Resources Global Development Limited. The transaction enhances the Group’s control over its assets and provides financial and operational flexibility. These developments have the potential to impact the company’s share price, making this news highly relevant to shareholders and market participants.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are encouraged to conduct their own due diligence and consult with financial advisors prior to making investment decisions. Neither the author nor the publisher assumes any responsibility for investment decisions made based on this article.

View ResourcesGbl Historical chart here