KUALA LUMPUR (Feb 19): Selangor Dredging Bhd (SDB) today announced a share swap as part of a restructuring exercise in preparation for an initial public offering in Singapore.

The group said its wholly-owned unit, SDB Mining Sdn Bhd (SDBM), is undertaking the restructuring exercise to dispose of a 37% stake in Fortress Mining Sdn Bhd (FMSB) to Fortress Minerals Pte Ltd (FMPL).

FMPL will pay RM5.81 million for the stake via the issuance of 154.94 million FMPL shares, SDB said in a filing with Bursa Malaysia.

Simultaneously, FMPL will acquire a 63% equity interest in FMSB, from the other shareholders of FMSB, namely YF Chee Holdings Sdn Bhd, Greger International Sdn Bhd, Smith ST Investment Pte Ltd and Western Capital Sdn Bhd.

This acquisition will be satisfied via the issuance of 263.81 million FMPL shares.

"As a result of the proposed share swap, SDBM will emerge as the 37% shareholder in FMPL, which in turn will be a 37% stakeholder in FMSB," said SDB.

SDB's share price closed unchanged at 66.5 sen today with a market capitalisation of RM283.38 million.