Transcorp can't make exit offer to minority shareholders

TRANSCORP Holdings is unable to make an exit offer to its shareholders, and one of its controlling shareholders has indicated that it does not intend to make such an offer.

The Catalist-listed firm announced in its regulatory statement to the Singapore Exchange on Tuesday that shareholder SG Royal Group, which holds a stake of 26.21 per cent, does not intend to make an exit offer to minority shareholders upon the delisting of Transcorp.

Another shareholder with a stake of 24.02 per cent, Cheng Mingming, has not responded to Transcorp's letter on an exit offer.

The company is thus unable to say whether the controlling shareholders will make an exit offer to shareholders by the deadline stipulated by the Singapore Exchange - that is, no later than a month from the date of the delisting notification of Sept 14.

Transcorp used to be in the automobile sales business, but has been deemed as a cash company since May 4, after exiting the unprofitable business of selling and renting out cars.

Transcorp said: "Based on the company's current financial position and status, the company is not able to make any exit offer to its shareholders. However, the company is currently in the process of assessing the feasibility of monetising certain assets and targets to provide an update to shareholders by November 2020."

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Separately, it has received a letter of demand from Fuji Xerox Singapore, arising from an ongoing legal suit between the parties; Transcorp is being asked to pay S$26,382.04.

The counter has been suspended since December last year.