Chaswood Resources kills proposed RTO, explores voluntary delisting

CATALIST-LISTED Chaswood Resources has killed its deal to acquire battery maker HK Aerospace Beidou New Energy Technology. The deal, proposed last December, would have resulted in a reverse takeover (RTO) of the Malaysian restaurant operator.

Having consulted its acquisition’s full sponsor, Chaswood would be voluntarily seeking delisting by initiating exit offer proposals with its major shareholders and other possible parties, said the company in a filing to the Singapore Exchange on Wednesday (Oct 5).

In its statement, Chaswood noted that anti-Covid movement restrictions implemented by the Chinese government have made it difficult for due diligence and restructuring for the RTO to be carried out – and so the parties have mutually agreed to axe the deal.

The RTO costs incurred, Chaswood noted, were borne by the vendor as per the agreement, and therefore its net tangible assets and earnings per share for the fiscal year to December 2022 would not be materially impacted.

Trading of Chaswood shares has been suspended since mid-2018.