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China Gaoxian fails to obtain shareholder approval for proposed divestment

YARN supplier China Gaoxian Fibre Fabric Holdings has shelved plans to dispose of Huaxiang China Gaoxian International Holdings after being unable to obtain shareholder approval, the group said in a Singapore Exchange filing on Wednesday.

An agreement to sell the loss-making subsidiary has lapsed after the conditions, in particular shareholder approval to sell the relevant shares, were not fulfilled or waived by the long-stop date of Apr 1, 2019.

The termination of the sale is expected to have a material impact on the group's consolidated financial statements for the previous financial year ended Dec 31, 2018, as well as for the current financial year. The company said it will make a separate announcement with details of the material differences between the audited and unaudited financial statements for FY18.

China Gaoxian shares have been suspended from trading since Apr 3.