Jerneh Asia, 37 per cent held by tycoon Robert Kuok, will buy the East Malaysian property developer's flagship asset, believed to be a RM1 billion commercial development
Jerneh Asia, 37 per cent held by tycoon Robert Kuok, will buy the property developer's flagship asset, believed to be a RM1 billion commercial development, by issuing new shares.
When contacted by Business Times, Jerneh Asia managing director Tam Chiew Lin could not confirm or deny if the reverse takeover deal is in the offing.
Efforts to contact the property developer were unsuccessful.
A source told Business Times that with the proposed reverse takeover in place, Jerneh Asia would be able to proceed with its capital repayment.
The group is required by Bursa Malaysia to submit a revamp plan if it wants to declare a special dividend.
Jerneh Asia has been looking for a new core business after selling its 80 per cent stake in insurance arm Jerneh Insurance Bhd (JIB) to ACE INA International Holdings last year for RM532.2 million cash.
Following the sale, the group now has RM635 million in cash.
Analysts believe that Jerneh Asia could pay up to RM2 a share in special dividends.
Jerneh Asia has about 182.8 million shares and 64.8 million warrants outstanding.
It is now classified as a Practice Note 16 (PN16) cash-rich company, on top of its PN17 loss of core business status.
It has up to December 1 2011 to submit a regularisation plan to free itself from the PN16 and PN17 status.
The sale of the 80 per cent stake in JIB marks Jerneh Asia's exit from the domestic insurance scene although it still owns a 31 per cent stake in HSBC Amanah Takaful (M) Sdn Bhd and has operations in China and Thailand as well as a stake in Areca Capital Sdn Bhd, a local fund management firm.
Jerneh Asia has yet to decide if it wants to keep its remaining businesses or exit altogether.
By Business Times
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