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Lereno Bio-Chem revises completion date for acquisition of Knit Textile and Apparel
LERENO Bio-Chem, which is attempting a reverse takeover (RTO) of Knit Textile and Apparel, said that the expected completion date is now Feb 28.
In Sept 2017, Lereno said that it had entered into an agreement with Lim Siau Hing @ Lim Kim Hoe to acquire all the issued ordinary shares in the capital of Knit Textile and Apparel for about S$26.4 million. The completion date was previously set for Feb 11.
Knit Textile and Apparel is a private company which is engaged primarily in the business of contract manufacturing of apparels, specialising in manufacturing of nightwear, lounge wear, casual wear and plus sizes apparels in Malaysia and Cambodia, and is in the process of expanding upstream into the knitting, dyeing, printing and finishing of fabric.
Under the restructuring, Knit Textile and Apparel is due to acquire a number of companies. The restructuring is still ongoing.
The proposed reverse takeover of Knit Textile and Apparel is the third reverse takeover attempt by the company since it was designated a cash company in 2015.
Lereno Bio-Chem also said that it has completed the disposal of MAE Engineers, which has ceased to be a subsidiary of the company. On 21 Dec 2018, the company had entered into a sale and purchase agreement with Ong Puay Koon, a director and controlling shareholder of Lereno Bio-Chem, to dispose of some 1.5 million shares in MAE for a nominal sum of S$1. This sum takes into account the fact that MAE has been dormant since April 2008 and had no business or operations, no recurring income and negative equity.