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SGX directs Yamada to seek shareholder approval for stake disposal, disclose buyer info
MUSHROOM supplier Yamada Green will be required to seek shareholder approval for the proposed sale of its 45 per cent stake in Fujian Tianwang Foods Co, the mainboard-listed S-Chip announced in a bourse filing on Friday.
On May 2, Yamada had consulted the Singapore Exchange (SGX) on whether shareholder approval is required under listing rules, as both Tianwang and Yamada are loss-making.
On Thursday, SGX replied that Yamada is required to seek shareholder approval, and further directed the company to disclose additional information on the buyer, Jinhai International Holdings, in the circular to shareholders.
Yamada's board will need to give its opinion on the ability of Jinhai to fulfil the payment of RMB39.9 million (S$7.9 million) for the purchase of the Tianwang stake. Yamada will need to explain the rationale for accepting deferred payment terms.
It will also need to provide background information on Jinhai, and indicate when the individual You Jinyang became a shareholder of Jinhai, and how Fujian Wangsheng Industrial Co and Jinhai became shareholders of Tianwang.
The company will further need to provide shareholders information on the financial performance of Tianwang over the past three years, Yamada's cost of investment in Tianwang and how Yamada calculated the loss on disposal.
Yamada said that it will convey the requirements to Jinhai and make an announcement in due course.
Trading in shares of Yamada has been suspended since September 2017.