Best World to request for trading resumption on Nov 14
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Michelle Zhu
BEST World International will request to resume trading at market open on Nov 14, following the expected release of its latest financial results on Nov 11.
In a bourse filing Tuesday (Nov 1), the beauty products distributor said it audit committee (AC) is of the opinion that concerns raised on the legality of its sales and distribution business model in China have been satisfied.
Based on the AC’s assessment, Best World’s non-compliance risk of its business model in China continues to be remote – as are the possibilities of the group being penalised by the country’s authorities.
The company engaged China state-owned company SDIC Human Resources for the recruitment, training and management of its franchisee sales representatives in January 2021. Best World said SDIC is “cautious in choosing its clients” – and therefore its engagement of the company will “also serve as an assurance” that its subsidiary BWL China “does not provide services, assistance or convenience for irregular transactions by other parties”.
Best World’s board of directors is of the view that sufficient information has been disclosed to enable trading of the company’s shares to resume in a fair and orderly manner.
The group affirmed that it would also comply with conditions set out by the Singapore Exchange Regulation (SGX RegCo) regarding its future actions.
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This includes obtaining an updated independent legal opinion on the legality of Best World’s sales and business model in China within four months after its financial year-end on an annual basis, and announcing the same on SGXNet. Any changes in its board of directors will also be subject to SGXRegCo’s approval for the next three years.
Trading in the shares of Best World has been suspended since May 2019 due to concerns over legality of its sales and distribution model in China, and the lack of clarity on its financial position.
After having trading put on hold for three years, the company received approval from SGX RegCo to resume trading subject to conditions.
Two equal access off-market share buyback exercises were conducted over the past year. According to the company, both exercises were oversubscribed, and achieved the objective of providing the company’s shareholders with a “certain level of liquidity and cash value” for their shares.
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