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Chinasing's board proposes winding up business
BELEAGUERED Chinasing Investment Holdings is proposing winding up its business after being unable to secure any exit offers for its potential delisting.
In a filing to the Singapore Exchange (SGX) on Monday evening, the company's board of directors said that it will "convene a special general meeting to provide shareholders of the company an opportunity to decide on a proposed voluntary winding up of the company".
Controlling shareholder of the company Huang Quan, and substantial shareholder Hong Yuexiong, will each be providing an undertaking to the company to vote in favour of the winding up proposal at the special general meeting, said the board.
This follows the company's inability to provide an exit offer to its shareholders after it received SGX's notification to delist. This is because it has yet to receive any exit offer proposal since it received the delisting notice.
In addition, "the company understands from the controlling shareholder that he does not have sufficient financial resources to undertake a reasonable exit offer", the release said.
The company has been "incurring substantial losses since 2011", save for 2012 which recorded a profit as a result of a disposal of a subsidiary, the board said.
A circular setting out details of the winding up proposal with the board's recommendation will be sent to shareholders in due course. The company will make the necessary announcements should there be further developments regarding the winding up proposal, the board added.