KS Energy enters agreement to transfer listing status to Singapore logistics company

KS Energy, a mainboard-listed company under judicial management, has entered an agreement to transfer its listing status to logistics company Jacobson Global Logistics (Singapore) via a scheme of arrangement.

The consideration for the transfer is S$3 million, to be satisfied via the issuance of new shares in Jacobson Global, KS Energy's judicial managers said in a Thursday bourse filing.

Based in Singapore, Jacobson Global is engaged in freight, transport arrangement and wholesale trade of a variety of goods. It was founded in 1994 and has 10 offices across South-east Asia, says its website.  

If KS Energy's assets are liquidated, it is unlikely that there will be any residual value available for distribution to the shareholders after payment to the creditors, the judicial managers said. They therefore believe the deal with Jacobson Global offers potentially better returns for shareholders.

The companies have committed to an exclusivity period expiring on Dec 31 this year. KS Energy will issue further details of the scheme to shareholders and creditors in due course.

Other troubled companies have in the past also attempted to transfer their listing status, but without much success. 

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In 2020, Technics Oil and Gas, then under judicial management, entered an agreement to transfer its listing status to healthcare player Singapore Knee, Sports and Orthopaedic Clinic. However, both parties eventually terminated the agreement and Technics was delisted.  

Another company under judicial management, China Great Land Holdings, likewise entered an agreement to transfer its listing status to an education business in 2020. But there was uncertainty over whether the transferee was suitable for listing; China Great Land subsequently delisted.

Shares of KS Energy last traded at S$0.013 before suspension.