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List. The companies are: (i) General Magnetics Limited (“General Magnetics”); (ii) Chuan
Soon Huat Industrial Group Ltd (“Chuan Soon Huat”); (iii) ASA Group Holdings Ltd
(“ASA”); (iv) Fastech Synergy Ltd (“Fastech”); and (v) Ionics EMS Inc (“Ionics EMS”).
These companies have registered financial losses for at least 5 successive years. They
were placed on the Watch-List 2 years ago after recording at least 3 consecutive years of
losses. Their financial condition was thus raised to the attention of the directors and
management of these companies, their shareholders, potential investors and the market
at large. SGX took steps to heighten transparency and alert investors of the risk of being
invested in companies that may face delisting. These companies were required to
provide the market with quarterly updates on their financial situation and developments.
Two years have passed and these companies have not returned to profitability.
Individually, their market capitalisation is less than S$10m. The continuing depletion of
resources does not serve the interest of shareholders. The companies should delist and
return remaining funds to shareholders instead of continuing to run down the assets.
Alternatively, a reasonable offer can be made to shareholders.
The Exchange has agreed to grant a three-month grace period to ASA and Fastech for
the purpose of making an exit offer to shareholders. Trading in these securities will be
suspended from 1 April 2010. These companies are required to provide the market with a
monthly update on the progress of their exit offer. The companies will be delisted should
they be unable to proceed with an exit offer, or upon expiry of the three-month period,
whichever is earlier.
Ionics EMS has, on 2 March 2010, announced its cash exit offer and has begun the
process of voluntary delisting. Given the steps taken by the company to procure an exit
offer for shareholders, trading in the company’s shares will continue until the completion
of the exit offer before the counter is delisted.
General Magnetics and Chuan Soon Huat will be delisted from 1 April 2010.
The Exchange announced on 10 February 2010 that a 12-month extension will be given
to Watch-List companies due for review in 2010 if they satisfy either one of the two
criteria, namely report a pre-tax profit, or have a minimum market capitalisation of S$40
million. Three companies, Chinasing Investment Holdings Limited, RH Petrogas Limited
and United Communications Holdings Limited, qualified for the extension and will be
reassessed in March 2011.
