Innopac to delist on June 30, no exit offer received

TROUBLED Innopac Holdings will be delisted from the Singapore bourse at 9am on June 30.

In a filing on Wednesday afternoon, the mainboard-listed company said there has not been any exit offer from interested parties.

The Singapore Exchange's (SGX) regulatory arm clarified that the delisting notice it earlier issued to Innopac was irreversible. The company had asked for the bourse operator's views in relation to its proposed restructuring.

The exchange will thus proceed to remove Innopac from the official list; the company's board of directors is seeking advice on the operational procedure of the delisting.

SGX RegCo issued the delisting notice on June 4, 2019 because the company was unable to exit the financial watch list within the 36-month cure period that began on June 3, 2016.

Innopac later said that it did not have the cash resources to make an exit offer to its shareholders. It also went on to request to be placed under judicial management, but the application was dismissed.

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On Wednesday, Innopac said it will arrange for the issuance of share certificates to its shareholders.

About a week ago, the company said it was looking to partially or fully acquire FEC Power, which manufactures and supplies cables to the power, telecommunications and automotive industries. Innopac signed a non-binding memorandum of understanding (MOU) for the proposed deal, which was an attempt by its board to add a cash flow-generating business "that will ensure its viability and ability to operate as a going concern".

It subsequently announced another non-binding MOU for a land-development joint venture (JV), inked between an Innopac unit and Malaysian construction company Wanland Metro. Innopac said last Thursday that the proposed JV was to develop an industrial park in Perak, and its subsidiary would be entitled to 30 per cent of the gross revenue of the development.

On Monday, Innopac responded to SGX RegCo's queries about the two MOUs, saying that its proposed corporate restructuring plan could include fund-raising via a private placement or rights issue. Innopac's directors also said that the proposed corporate exercise would be aimed at "resuscitating the company's prospects", and thus asked the regulator about the possibility of relisting its stock.

Shares of Innopac have been suspended from trading since June 2018.

READ MORE:

• Innopac signs MOU to acquire cable manufacturer in struggle for survival
• Innopac's bid for judicial management dismissed due to unsuccessful application to adjourn court hearing