Sinopipe proposes RTO deal, move of listing to Catalist

SINOPIPE Holdings has entered an agreement for an acquisition that constitutes a reverse takeover (RTO), and plans to move its listing from the mainboard to Catalist, it announced on Wednesday evening.

On Wednesday, Sinopipe said it had entered an acquisition agreement with Shanxi Bibenet Information Technology Co. A Memorandum of Understanding for the deal had earlier been signed in February.

The consideration for the sale shares will be determined based on an independent business valuation report, said Sinopipe. The proposed acquisition will be funded through the issuance of consideration shares, with the remainder in cash.

Sinopipe said it is in the process of finalising the financial effects of the proposed deal on net profit, net tangible assets per share and earnings per share and "will disclose the relevant information in due course".

As the proposed deal will result in an RTO, it will require the approval of the Singapore Exchange, and of shareholders at an extraordinary general meeting. In connection with the deal, Sinopipe will transfer its listing status from the mainboard to Catalist. It said it will make the necessary announcements when there are further developments on the proposed acquisition and proposed listing.

Sinopipe has been deemed a cash company, with trading in its shares suspended since Apr 2, 2012. The company said it has been searching for potential investors for the injection of new businesses, and the proposed acquisition would enable it to recommence operations.