Business

Wednesday July 29, 2009

Be Top second China firm to list on Bursa


It will acquire John Master via RM328.1mil reverse takeover

KUALA LUMPUR: China textile group Be Top Group Ltd is set to be the second Chinese company to be listed on Bursa Malaysia under a plan to acquire John Master Industries Bhd (JMI) in a reverse takeover exercise valued at RM328.1mil.

Xingquan International Sports Holdings Ltd, a Chinese sports-shoe maker, made its debut on the local bourse last month.

Under the reverse takover plan, JMI will first sell its clothing and property businesses to its major shareholder Yoon Foong Garments Sdn Bhd for RM78.5mil, with the proceeds to be distributed to shareholders under a capital repayment plan.

After that, Be Top, the holding company of Chinese fabric maker Top Textile (Suzhou) Co, will be injected into JMI, the Malaysian company said.

Jackson Ho (left) and Pan Ding at the press conference

JMI will issue new shares and convertible bonds and make a rights offer to acquire Be Top.

Be Top’s owners, brothers Pan Ding and Pan Dong, will collectively own more than 51% of JMI after the deal, according to a JMI statement.

“JMI shareholders will have the choice of re-investing in a transformed JMI, or retain the cash that will be returned to them following the disposal of the existing business and the capital repayment exercise,” JMI executive director Jackson Ho said at a media conference here yesterday to announce the proposed acquisition.

“The existing JMI shareholders will be given priority to invest in the new JMI group via a renounceable rights issue,” he added.

As part of the terms of the acquisition, the vendors would provide a profit guarantee of no less than 100 million renminbi (about RM51mil) for Be Top for the financial year ending 2009, Ho said.

The takeover exercise involves an issuance of 780 million new shares at 20 sen per share and RM172mil of convertible bonds.

The rights offer involves 307 million shares on the basis of 10 rights shares for every one held, at an indicative price of 20 sen per share.

The entire exercise is expected to be completed by the first quarter of 2010, with the capital repayment and disposal to be done by the fourth quarter.


JMI : [Stock Watch] [News]


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