GW Plastics to see a reverse takeover?

Business & Markets 2014
Written by Wei Lynn Tang of theedgemalaysia.com
Thursday, 09 January 2014 09:07
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KUALA LUMPUR: GW Plastics Holdings Bhd may see a reverse takeover
(RTO) of the company, which is without a core business after disposing of its
businesses and subsidiaries more than a year ago.
The suggestion of such a possibility is the company’s request for suspension of
its securities with effect from 4.45 pm yesterday. The counter will remain
suspended until 5pm today, pending an announcement relating to a material
corporate exercise.
Other possibilities include acquisition of new businesses or assets to maintain
its listing status.
GW Plastics had earlier stated that it is in the process of identifying new
businesses and/or assets that have the requisite track record and future
prospects to be acquired, to enable the company to regularise its condition and
to maintain the listing status on the Main Market of Bursa Securities.
GW Plastics is controlled by Lim Kok Boon, who is also the CEO of the company and Yeoh Soo Ann, non-independent and non-executve
director, via Megastart Sdn Bhd, which in turn is the largest shareholder with a 30.77% stake in the company.
Key Bumi Sdn Bhd, controlled by director Abang Ariffin Abang Bohan, is the second largest shareholder with a 25.62% stake.
Lim, including his direct shareholding of 6.14%, has a deemed interest of 36.91% while Yeoh has 38.97%, including a direct interest of
8.2%.
The company was without a core business after it disposed of its business and subsidiaries to Scientex Packaging Film Sdn Bhd, a
wholly-owned subsidiary of Scientex Bhd, for RM283.2 million in October 2012.
The disposal of 100% equity interest in Great Wall Plastics Industries Bhd and GW Packaging Sdn Bhd was completed on Jan 8, 2013,
raking in a gain of RM71.5 million for the company.
Following the disposals, GW Plastics was without any business or operations and thus considered an affected listed issuer pursuant to
Practice Note 17 (PN 17) of the listing requirements.
With the disposals of its subsidiaries, GW Plastics had not generated any business revenue.
For its third quarter ended Sept 30, 2013, the company recorded RM1.192 million in interest income from short-term deposits of funds.
As at Sept 30, it had RM149 million in short-term deposits.
GW Plastics had in December 2012 proposed to undertake a capital reduction and repayment from the disposals to entitled shareholders.
Two days ago, GW Plastics announced that the High Court of Malaya had granted an order confirming the proposed capital reduction,
which will be effective once the order is lodged with the Companies Commission of Malaysia.
Accordingly it said, the entitlement date for the capital repayment of 61 sen for every one GW Plastics share held shall be announced in
due course.