Thinly-traded Esmart Holdings (5CY.SG) is trading up 33.3% at 0.02 cents on hopes proposed MYR670.6 million ($285.4 million) takeover of Atlan Holdings’ (7048.KU) DFZ Capital, Darul Metro businesses in Malaysia will breathe new life into money-losing Singapore-based company, says Dow Jones.

The designer, distributor of intermediate electronic products will fund acquisitions by issuing 18.1 billion new shares at 1.5765 cents each, as well as warrants, resulting in reverse takeover by Atlan, which will end up with 96.24% of Esmart.

Atlan is involved in various businesses, including retail, property development, hospitality, production of automotive components. Esmart booked FY09 net loss of $5.4 million as revenue down 69.0% at $2.9 million due to fewer projects undertaken.