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CRANE specialist Tat Hong Holdings, which has halted trading in its shares after they rallied more than 5 per cent on Thursday, revealed that it has been approached by certain parties on a potential transaction.
Its shares were hovering around S$0.405 each, up S$0.020 a share, or 5.195 per cent, at the time trading was halted around 03.18pm. More than three million shares changed hands.
Referring to the unusual trading volume and sharp hike in its stock price, Tat Hong said:"The board wishes to inform shareholders that the company has been approached by certain parties in connection with a potential transaction in relation to the securities of the company."
"The discussions are ongoing and there is no certainty or assurance whatsoever that any transaction will arise from these discussions."
It has appointed Rippledot Capital Advisers as its financial adviser in connection with such approaches.
Last Thursday, the company reported that it slipped deeper into the red for the fiscal first quarter ended June 30, 2017. Net loss was S$5.086 million, compared to a net loss of S$3.578 million a year ago. Revenue grew 1 per cent to S$118.329 million.
On June 30, 2017, it recorded a cash and cash equivalents of about S$117 million of which S$21.4 million was earmarked for certain banking facilities.
Looking ahead, Tat Hong said it expected the Asean market to remain challenging, while demand from China to be healthy. It was "cautiously optimistic" about the improving market and economic outlook in Australia.
Tat Hong said it would continue its fleet rationalisation activities, and also continue to take advantage of its strong China presence to explore opportunities in China's One Belt One Road initiative.