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SHC calls off RTO, faces delisting if new business not found

SHC Capital faces potential delisting again after calling off a reverse takeover deal with Chinese equipment maker Tong Da Medical Device.

SHC, a cash company that was previously involved in underwriting insurance risks, said it could not make significant progress with Tong Da and its owners in carrying out a financial audit and other due diligence of the Chinese company.

Both parties agreed to terminate the deal as of Oct 31, SHC said. The company has spent about S$1.4 million so far on the terminated deal.

SHC has until Jan 31, 2016 to find a new business, or it will be delisted from the Catalist board.

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The company said it is exploring options, including a voluntary liquidation if SHC cannot obtain a further extension of time to find a new business. If there is a voluntary liquidation, the company may make a distribution via a capital reduction or an interim distribution.

The company reported on Monday that it had S$38.9 million of net assets as at Oct 31, including S$39.3 million of cash and bank balances.

SHC shares were not traded on Monday, but were bid at 12.9 Singapore cents and offered at 13.3 Singapore cents.