KUALA LUMPUR: Texchem Resources Bhd (TRB) has proposed to voluntarily delist its 70.48%-owned subsidiary Singapore-listed Texchem-Pack Holdings (S) Ltd via the undertaking of an exit offer to acquire all remaining 29.52% or 40.95 million shares in the latter at S$0.135 (RM0.327) each for a total of S$5.5 million cash.

In a statement yesterday, TRB said the board of Texchem-Pack, which was listed on Nov 2, 2006, had reviewed the proposal and had resolved to convene an EGM in due course to seek its shareholders’ approval.

Texchem-Pack group produces among other things thermoformed packaging products, precision injection moulded products, extruded plastic sheets, shipping rails, expanded polystyrene products, and corrugated cartons. It posted a net profit of RM258,000 in its financial year ended Dec 31, 2008, with net assets of RM82.89 million.

TRB said the trading of Texchem-Pack shares had generally been “thin”, with an average daily trading volume of about 25,685 shares over the last 12 months, representing less than 0.06% of the free float.

It said the offer price was a 42.1% premium over last Friday’s closing price of S$0.095. TRB expects to complete the exercise by the second quarter of this year.


This article appeared in The Edge Financial Daily, February 9, 2010.