Catalist-listed M Development pursues voluntary liquidation

CATALIST-LISTED M Development intends to go private by means of a members' voluntary liquidation, it said in a Singapore Exchange (SGX) filing on Thursday evening.

This follows the Oct 16 notification of delisting which M Development received from SGX. In compliance with Listing Rule 1309, the company must provide a fair and reasonable exit offer to shareholders, with the proposal within a month of such notification.

In its Thursday announcement, M Development said that it had written to the SGX on Wednesday, stating its intention to make the exit offer by way of a members' voluntary liquidation.

The company has been a cash company since Sept 8, 2017. It is in a net cash position, and has "no other feasible exit strategy immediately available", said M Development.

Taking all this into account, the company's view is that it is in the best interest of shareholders to undertake voluntary liquidation.

For this, the company will convene an extraordinary general meeting (EGM) to seek shareholders' approval. A circular with further details will be despatched to shareholders.

A NEWSLETTER FOR YOU

Friday, 8.30 am

SGSME

Get updates on Singapore's SME community, along with profiles, news and tips.

Sign Up

M Development also provided an indicative timeline, noting that it is subject to change, depending on progress. The circular, for instance, may be despatched 13 weeks after the delisting proposal is approved by SGX, with the EGM held three weeks later.

M Development said it will make appropriate announcements when there are material developments, and advised shareholders to exercise caution.