Sinopipe Holdings, which has been deemed a cash company owing to the disposal of all its operating subsidiaries several years ago, may no longer be considered so going forward.
This comes as the China-based company has proposed to fully acquire Ten-League Engineering & Technology.
The latter is a heavy equipment engineering solutions provider that serves primarily in the construction and foundation industries.
According to a Dec 30 filing, the proposed acquisition is subject to shareholder approval, among other things.
The proposed acquisition is also subject to the Singapore Exchange’s approval for the transfer of Sinopipe’s listing on the Mainboard to the Catalist board at or immediately following the completion of the acquisition.
The company says the acquisition will be satisfied through the issuance of new Sinopipe shares.
SEE:Sinopipe to become cash company after proposed disposal of subsidiaries
In conjunction to that, the company says it will propose to undertake a share consolidation exercise to comply with SGX listing rules.
Sinopipe will also propose to undertake a compliance placement to keep its public float to at least 10%.
Upon completion of the acquisition, the core business of the company will be in the provision of heavy equipment engineering solutions.
According to Sinopipe, the proposed acquisition is in the “long term interest” of shareholders.
The proposed acquisition has the potential to increase the market capitalisation and widen the investor base of the company, it explains.
Otherwise, the company would be facing a delisting and liquidation exercise, it says.
In such a scenario, “shareholders are not likely to receive any distribution arising from the liquidation”, it adds.
Sinopipe was previously involved in the manufacturing and selling of plastic pipe fittings and related materials via its 99.4% owned principal subsidiary, Fujian Atontech.
