Chasen Holdings

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#15
CHASEN HOLDINGS: Progressing towards spin-off of 2 subsidiaries

Written by Leong Chan Teik
Published: 11 June 2019

In a July 2018 corporate and business update filed on the SGX website, Chasen Holdings said it was exploring "potential spinoffs and other capital market actions to enhance value to its shareholders".

Shortly after that, The Edge Singapore quoted non-executive chairman Eric Ng saying at a results briefing: “Right now, if you add up the value of all the subsidiaries, they far exceed the value of the parent company.

"So, the only thing to do is to let the subsidi­aries go to realise the full value of the Group.”

At last week's FY19 results briefing, Mr Ng indicated that progress has been made towards a spin-off of, possibly, its Chinese subsidiary and  Malaysian subsidiary.

It is in the process of appointing listing professionals, including investment bankers.

On the attractive fundamentals of the Chinese subsidiary for a listing, he pointed out that it has been in operation for some 15 years, carrying out a very niche business.

This chiefly involves overseas OEM equipment move-in for newly established manufacturing facilities in the China coastal regions as well as inland provinces, and from China to Southeast Asia.

Chasen, which considers that it has only two competitors in China, targets customers who are flat-panel display manufacturers and semi-conductor manufacturers, among others.

Its China relocation business grossed RMB180 million in FY19.

As for the Malaysian subsidary, which is profitable, he noted that it has achieved revenue of between RM30 million and RM40 million a year -- sufficient for a spinoff.

The Malaysian subsidiary carries out third-party logistics across land borders in both directions. It is unusual in that its trucks, instead of being domestic-focused, traverse multiple countries -- Singapore, Malaysia, Thailand, Vietnam and China.

If and when the spinoffs materialise, the unlocking of value potentially could help Chasen achieve the criteria to exit the SGX watchlist (MTP) by the June 2020 deadline set by SGX.

The SGX criteria to exit the MTP Watchlist are, simply put, a market capitalisation of at least S$40 million (currently S$34 million) and a stock price of 20 cents (currently 8.8 cents).

Asked if there is a fallback plan if the spinoffs are not achieved for whatever reason, CEO Justin Low said Chasen has until the end of 2019 to consider moving its Singapore listing to Catalist from mainboard.

More details in https://nextinsight.net/story-archive-ma...bsidiaries
Specuvestor: Asset - Business - Structure.
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Messages In This Thread
Chasen Holdings - by Stocker - 31-01-2012, 01:01 PM
RE: Chasen Holdings - by DP28 - 16-10-2013, 09:30 AM
RE: Chasen Holdings - by GFG - 28-10-2013, 11:35 PM
RE: Chasen Holdings - by kelvesy - 16-10-2013, 08:56 PM
RE: Chasen Holdings - by DP28 - 16-10-2013, 10:33 PM
RE: Chasen Holdings - by mkmk - 21-10-2013, 09:28 PM
RE: Chasen Holdings - by kelvesy - 09-11-2013, 12:12 AM
RE: Chasen Holdings - by crabcrab - 10-11-2013, 05:56 AM
RE: Chasen Holdings - by hh488 - 11-11-2013, 02:46 PM
RE: Chasen Holdings - by GPD - 11-11-2013, 05:41 PM
RE: Chasen Holdings - by sillyivan - 03-04-2019, 12:34 PM
RE: Chasen Holdings - by sillyivan - 05-04-2019, 09:02 PM
RE: Chasen Holdings - by cyclone - 30-05-2019, 07:01 PM
RE: Chasen Holdings - by sillyivan - 31-05-2019, 01:22 AM
RE: Chasen Holdings - by cyclone - 11-06-2019, 07:33 PM
RE: Chasen Holdings - by cyclone - 23-08-2019, 10:52 PM
RE: Chasen Holdings - by cyclone - 09-12-2020, 06:06 PM

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