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AVIC International Maritime calls for trading halt; Libra Group suspends shares

AVIC International Maritime Holdings has requested a trading halt pending the release of an announcement, while Libra Group has called for a trading suspension as it is unable to continue as a going concern.

Both Catalist-listed firms made their announcements in separate bourse filings on Wednesday morning.

Marine and offshore firm AVIC had said on Tuesday evening that China Merchants Industry Investment intends to make a voluntary conditional cash offer for AVIC shares at S$0.15 each.

China Merchants Industry Investment is a wholly owned subsidiary of China Merchants Industry Holdings Co, Ltd (CMIH), which provides offshore engineering equipment and services. Its rationale for the offer is to combine the complementary businesses and expertise of AVIC and CMIH. These include cross-selling to an enlarged customer base, economies of scale, improved productivity and cost efficiency, and sharing of domain knowledge.

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Shares of AVIC closed flat at 10.9 Singapore cents on Tuesday, before the potential offer was announced.

Meanwhile, mechanical and electrical engineering firm Libra Group has suspended its shares after announcing on Tuesday night that it will not be able to continue as a going concern due to various claims filed against two of its subsidiaries, Cyber Builders and Libra Building Construction.

Libra Group's board said on Tuesday that it is assessing the impact of these matters and will consult with legal advisers on how to proceed. Following discussions with the company’s sponsor, RHT Capital, the board had recommended a trading suspension.

Libra Group had earlier requested a trading halt on Aug 23. Its shares last changed hands at 3.5 Singapore cents on Aug 22.