Suspended Incredible Holdings to be target of proposed reverse takeover by Malaysian firm

[SINGAPORE] Catalist-listed Incredible Holdings inked a non-binding agreement with Malaysian company Sheng Tai International that involves the exchange of a prime land asset for shares that is expected to lead to a reverse takeover.

The board of Incredible Holdings said in a Tuesday (Mar 11) bourse filing that the proposed transaction is part of the group’s corporate strategy to diversify returns and achieve long-term growth, and is expected to provide new revenue streams and improve its prospects.

Sheng Tai – involved in acquisition, property development, fashion, wellness and development, hospitality as well as agriculture – will inject a prime land asset located in Malaysia into Incredible Holdings for development and construction.

In return, the Malaysian company will receive new shares in Incredible. And upon completion of the transaction, the latter’s board will be restructured by Sheng Tai.

Board oversight lapses

Contrary to its name, Incredible has had a rocky history.

Joint investments made by Incredible Holdings and Ntegrator Holdings, formerly known as Watches.com, were found to be prejudicial to the interests of the companies and their respective minority shareholders.

This was revealed in findings by Provenance Capital that were released by the Singapore Exchange Regulation in November 2023.

The independent reviewer had been appointed to review all corporate actions and fundraising by both companies over a 12-month period under notices of compliance issued in June 2022.

Provenance found that Incredible and Ntegrator had paid significant consideration for the acquisitions of most of the companies they had targeted, which either had relatively weak financials or the sum paid was not supported by the opinion of independent financial advisers and valuations of the target companies.

Shares of Incredible remain suspended.