Japfa unit AustAsia to list on Hong Kong Exchange by end-December
JAPFA’S China-focused dairy unit AustAsia Group is expected to list on the Stock Exchange of Hong Kong (SEHK) by Dec 30 this year, barring any “unforeseen circumstances”, said Japfa on Thursday (Dec 15).
Previously known as AustAsia Investment Holdings, the group was granted in-principle approval on Thursday from the listing committee of SEHK for its proposal to list on the exchange.
The dairy group will register its prospectus for the proposed listing on Dec 15. It expects public offering for its shares on SEHK to commence on Dec 16 and close on Dec 21. The expected record date will be on Dec 29 at 5 pm, before it begins trading on Dec 30.
In a cautionary note, Japfa highlighted that the proposed listing was still subject to the fulfilment of certain conditions under the in-principle approval.
“There is no assurance that the final approval for the proposed listing will be granted.”
Japfa first announced its intention to list its unit, AustAsia, in March this year. It proposed a distribution-in-specie of its entire shareholding in AustAsia, which will allow eligible shareholders to receive AustAsia shares in proportion to their respective shareholdings in Japfa.
The group believes the listing will unlock value for shareholders by creating two separate businesses and providing each entity’s management the operational flexibility and ability to concentrate on their respective core business.
It can also better focus its financial resources on its animal-protein business without needing to plan for AustAsia’s funding requirement, the company added.
Japfa shares closed Wednesday flat at S$0.485 before the announcement.
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