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Midas Holdings' board to travel to China for due diligence, to hold shareholders dialogue

BELEAGUERED railway-parts maker Midas Holdings said its board of directors will be travelling to China to meet the relevant subsidiaries next week to obtain information, including cash validation, litigations, and undisclosed subsidiaries.

It did not receive full co-operation of the relevant staff in its Chinese subsidiaries, Jilin Midas Aluminium Industries Co Ltd, Jilin Midas Light Alloy Co Ltd and Jilin Midas Investments Co Ltd.

The group is also planning to hold a shareholders' dialogue towards the end of this month to address questions which shareholders may have regarding the announcements and corporate developments, Midas Holdings said in a regulatory filing on Friday.

This dialogue session is being planned in response to many emails received from shareholders and concerned stakeholders.

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Trading in the company's stock has been suspended since early February, after several litigations, enforcement orders, Chinese court orders against certain Chinese subsidiaries as well as unauthorised loans and corporate guarantees were made by some subsidiaries.

The Singapore Exchange had also demanded the immediate resignation of two of its top executives. Among them, Midas executive director and chairman Chen Wei Ping stepped down on April 2.

As for Ma Ming Zhang, who was said to be involved in the unauthorised loans taken out by subsidiary Jilin Midas Aluminium Industries Co Ltd, he has completed the documents to relinquish his role as legal representative of Jilin Midas Aluminium Industries Co Ltd and Shanxi Wanshida Engineering Plastics Co Ltd (Wanshida).

Midas group's executive director, Xu Wei Dong, is in the process of assuming the role of legal representative for those subsidiaries, the group said.