Lion Corp Bhd chairman and managing director Tan Sri William Cheng has backed out of an offer to acquire the group’s entire debt notes for RM246mil
January 12, 2014 2 Comments
Updated: Thursday January 9, 2014 MYT 9:16:08 AM
Chairman backs out of deal to acquire Lion Corp’s debt for RM246mil
The statement said: “He will be reviewing terms for a renewed offer for the proposed acquisition of the Lion Corp bonds, debts and redeemable convertible secured loan stocks (RCSLS)….””PETALING JAYA: Lion Corp Bhd chairman and managing director Tan Sri William Cheng (pic) has backed out of an offer to acquire the group’s entire debt notes for RM246mil.
Lion Corp said yesterday in a filing with the stock exchange that Cheng had issued a letter dated Jan 6 informing the lenders of his decision.
“He will be reviewing terms for a renewed offer for the proposed acquisition of the Lion Corp bonds, debts and redeemable convertible secured loan stocks (RCSLS).
“Pursuant to the withdrawal, Lion Corp had, vide a letter dated Jan 7, 2014, informed the Lion Corp lenders that the resolution set out in the circular to the Lion Corp lenders dated Dec 13, 2013 in relation to the proposed amendments is no longer applicable and will therefore be withdrawn from the meeting of Lion Corp lenders scheduled to be held on Jan 13,” it said.
Lion Corp said that except for the proposed amendments, Lion Corp would seek the lenders’ indulgence and approval for the deferment at the meetings of the lenders scheduled to be held on Jan 13.
To recap, Cheng had offered on Dec 12 to obtain the outstanding bonds/debts/RCSLS for RM246mil cash.
There was also a proposed deferment of the payment of the principal and coupon of the Lion Corp Class B(a) RCSLS, LCB Class B(b) RCSLS and LCB Class B(c)RCSLS amounting to RM85.41mil from Dec 31, 2013 to June 30, 2014.
StarBiz had reported in November that the troubled steel product manufacturer, which recently slipped into the PN17 category for financially distressed companies, was in the midst of formulating a viable regularisation plan.
Sources had said the company would look at several avenues.
This included the divestment of non-core businesses and injection of fresh capital via new strategic shareholders, be they local or foreign parties, as part of an effort to quickly exit its PN17 status.
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Is it high percentage of delisting??
Possible. They are required to submit and implement a Regularisation Plan by 30 Ujn 2015, failing which they will be delisted.
In general, listed Asian companies of tycoons are often disguised as set-up front vehicles with nice accounting numbers to raise capital, give related-party loan guarantees/asset pledges and intercorporate loans to fund the unlisted business empire and personal excesses, at the expense of the abused minority shareholders. The crown jewel assets of the Asian tycoons are usually not listed and kept in the private family business vehicles.
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1193749
PRACTICE NOTE 17 / GUIDANCE NOTE 3: REGULARISATION PLAN
Description LION CORPORATION BERHAD (“LCB” or the “Company”)
-APPLICATION FOR AN EXTENSION OF TIME TO COMPLY WITH PARAGRAPH 8.04(3) AND PRACTICE NOTE 17 (“PN17”) OF THE MAIN MARKET LISTING REQUIREMENTS OF BURSA MALAYSIA SECURITIES BERHAD
We refer to the First Announcement dated 25 October 2013 made by the Company in relation to the Company being classified as a PN17 Issuer and the announcements dated 4 November 2013, 2 December 2013, 2 January 2014, 24 January 2014, 4 February 2014, 3 March 2014, 1 April 2014, 2 May 2014, 2 June 2014, 1 July 2014, 1 August 2014, 2 September 2014, 1 October 2014, 31 October 2014, 3 November 2014, 1 December 2014, 2 January 2015, 4 February 2015, 16 February 2015, 2 March 2015 and 1 April 2015 pursuant to the requirements under PN17 and the announcement dated 19 December 2014 in relation to the approval for an extension of time from Bursa Securities until 28 February 2015 for the Company to submit a regularisation plan (“Regularisation Plan”) to the regulatory authorities for approval (“Announcements”). Unless otherwise stated, defined terms in this announcement shall carry the same meanings as defined in the Announcements.
On behalf of the Board of Directors of the Company, SJ Securities Sdn Bhd (“SJ Securities”) wishes to announce that Bursa Malaysia Securities Berhad (“Bursa Securities”) had vide its letter dated 10 April 2015 (“Bursa Letter”) granted the Company an extension of time of 4 months up to 30 June 2015 to submit a regularisation plan to the regulatory authorities.
The Bursa Letter also stated that Bursa Securities’ decision is without prejudice to its right to proceed to suspend the trading of the securities of the Company and to de-list the Company in the event:
the Company fails to submit a regularisation plan to the regulatory authorities on or before 30 June 2015;
the Company fails to obtain the approval from any of the regulatory authorities necessary for the implementation of its regularisation plan; or
the Company fails to implement its regularisation plan within the time frame or extended time frames stipulated by Bursa Securities.
Upon occurrence of any of the events set out in (i) and (iii) above, Bursa Securities shall suspend the trading of the listed securities of the Company upon the expiry of five (5) market days from the date the Company is notified by Bursa Securities and de-list the Company, subject to the Company’s right to appeal against the delisting.
This announcement is dated 10 April 2015