Texchem ordered to make exit offer for financially-troubled Singapore-listed unit

by **Cals** Thu 06 Mar 2014, 17:27

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Thursday, 06 March 2014 13:31

KUALA LUMPUR (Mar 6): Diversified Texchem Resources Bhd is expected to make an exit offer for shares in its 70.48%-owned Singapore-listed subsidiary Texchem-Pack Holdings (S) Ltd.

This follows a Singapore Exchange Securities Trading Ltd's delisting notification to Texchem-Pack after the latter failed to rejuvenate its financials within the time frame specified by the bourse regulator.

The deadline for the regularisation was yesterday (March 5, 2014).

"In the delisting notification the SGX-ST (Singapore Exchange) has advised that TXPHS (Texchem-Pack) or its controlling shareholder(s) must comply with the listing manual which requires TXPHS or its controlling shareholder(s), i.e. TRB (Texchem Resources), to make a reasonable exit offer to shareholders.

"The SGX-ST has given TXPHS one month from the date of the delisting notification to make an exit offer proposal," Texchem Resources told Bursa Malaysia today.

According to Texchem Resources which undertakes food processing, restaurant and chemical-trading operations, Texchem-Pack had failed to regularise its financials within a two-year duration since the firm was placed on Singapore Exchange's watch list on March 5, 2012.

"At this juncture, TRB is not in a position to determine the financial impact on TRB group as the exit offer price has yet to be considered and determined by the board of directors of TRB.

"TRB will make further announcements as and when there are material updates on the status of the exit offer proposal," Texchem Resources said.

According to Texchem Resources, Singapore Exchange has indicated that trading of Texchem-Pack shares will continue until 5pm, on April 4 this year.

Trading of the stock will be suspended from 9am, this April 7 until completion of the exit offer.