Memstar's transfer of listing status to TBN hits roadblock

MEMSTAR Technology's bid to transfer its listing status on the Singapore Exchange (SGX) to TBN Property Co may have hit a roadblock, after the SGX rejected its latest requests to extend deadlines related to the transfer. 

The transaction was first mooted in July 2018 when Memstar, a cash company facing delisting from the exchange's Mainboard, said it would undertake a transfer of its listing status to Thailand mall operator TBN through a scheme of arrangement. In return, TBN would issue S$6 million worth of its own shares to Memstar. 

TBN also intended to subsequently transfer from the Mainboard to SGX's sponsor-based Catalist platform.

The deal was initially slated to be completed by March 31, 2019 but remains in the works today. 

Recently, Memstar and TBN missed submitting the scheme and pre-admission notification by Dec 31, 2019. The two later sought an extension to submit the scheme and notification by Dec 31, 2020. In doing so, they would also seek shareholders' approval for the transaction by May 31, 2021 instead. 

On Jan 28, SGX rejected the request, saying it had already given "various extensions of time", including since Memstar's failed first attempt with Longmen Group in April 2016. 

Among other reasons, SGX also said Memstar has not shown how it would be able to comply with the Catalist admission requirements, as TBN is in the preliminary stage of a restructuring exercise. 

In addition, it was unclear as to whether the sponsor is "reasonably certain" that TBN will be suitable for listing after the restructuring, and whether the transaction can be completed by the end of the further extension period sought. 

In an exchange filing on Wednesday, Memstar said it will continue to "evaluate other alternatives, including potential and suitable opportunities".

Trading in Memstar's shares has been suspended since June 2016.