Dragon Group International, a Singapore-listed company active in the distribution of electronic components, semiconductors and batteries and storage solutions, on October 19 announced its intention to purchase Armenian mining company Coeur Gold Armenia for $368.3mn.

Coeur Gold mines gold, copper and silver, Armenia's three largest export commodities. The company is registered in the Seychelles and does not have a website. Its ultimate beneficiaries are not listed on Bloomberg. The transaction would amount to one of the largest merger and acquisition deals seen in Armenia in recent years. Another acquisition - that of electric utility ENA by Russian real estate conglomerate Tashir Group in 2016 - was worth $33mn plus $220mn in ENA's pre-existing debt.

Dato' Michael Loh Soon Gnee, Dragon Group's executive chairman and CEO, said that the acquisition plan is motivated by an expected increase in the demand for gold. Furthermore, "this acquisition opens a gateway for Dragon Group International to enter a market which could see very favourable circumstances in the medium term", he added.

Only $150,000 of the purchasing cost will be paid in cash, Business Times Singapore reported on October 19. The remainder will be raised by listing 2.5bn shares at 20 Singapore cents a share. Dragon Group has already filed a petition with the Singapore Stock Exchange for the issuance, the report added.

As a result of the Armenian government's efforts to attract more foreign investment and its partnership with Armenian businesspersons active in the diaspora, investment in Armenia increased by 36.6% y/y to over $1bn in the first half-year; foreign direct investment alone was up by 26.3% y/y. 

Attracting investment is one of the pillars in Prime Minister Karen Karapetyan's plans to boost economic growth. The combatting of corruption, increasing transparency and fighting tax evasion are other core objectives.