JTC Corporation has indicated that it has no objection to the change in LHN Limited’s 41O indirect percentage ownership in Hean Nerng Logistics (HN Logistics) in connection with the latter’s holding of the property at 7 Gul Avenue.
JTC is also prepared to grant its written consent for the change, says LHN Logistics .
The consent from JTC is one of two pre-conditions for the offer by Milkway Chemical to go through.
On June 4, Milkyway Chemical made an offer of 22.66 cents per share for the shares in LHN Logistics, valuing the latter at around $38 million.
The offer was pre-conditional in that shareholders of LHN are to approve the sale while JTC has to provide written consent for the change in LHN’s indirect ownership in HN Logistics, LHN’s wholly-owned subsidiary.
LHN Limited will be holding its extraordinary general meeting (EGM) at 9.30am on July 31 to seek approval from its shareholders.
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In respect of the fee paid to JTC, LHN Limited will bear $3.1 million out of the $4.1 million payable. The balance of $1 million will be borne by HN Logistics. LHN Limited has proposed to extend a loan to HN Logistics for the settlement of the balance. The loan is to be repaid as soon as possible and no later than five days immediately following the first closing date of the voluntary general offer for the shares of LHN Logistics.
The payment of the JTC fee will reduce LHN Limited’s net tangible asset (NTA) per share to 8.21 cents, from 8.81 cents as at Sept 30, 2022.
The group’s loss per share for the FY2022 ended Sept 30, 2022, would also have deepened to 3.32 cents from 2.69 cents originally.
Shares in LHN Limited and LHN Logistics closed flat at 39 cents and 22.5 cents respectively on July 28.
