Tat Seng Packaging, which is 63.95%-owned by Hanwell Holdings, says the company is evaluating the feasibility of a possible spin-off and listing of Tat Seng Packaging (Suzhou) and the group’s other subsidiaries in China on a “suitable stock exchange” to be determined by the company.
Tat Seng’s business in China comprises the operating businesses in the country under Tat Seng Packaging (Suzhou).
According to Tat Seng Packaging, the proposed spin-off and listing will reduce the impact of market and economic conditions in China on the group’s operating businesses in Singapore.
It adds that the listing and spin-off will allow management to focus on each segment respectively.
Furthermore, the move will allow the business in China to be financially independent and have direct access to capital markets without relying on the company for financial support.
As the proposed spin-off is still in its early stages, Tat Seng stresses that the proposal is still dependent on the approvals and consents from the SGX-ST, as well as other relevant regulatory authorities and parties.
Shares in Tat Seng Packaging closed 4 cents higher or 6.3% up at 68 cents on Feb 25.
