PETALING JAYA: Shareholders of Prestar Resources Bhd have approved the listing of the company’s subsidiary Tashin Steel Sdn Bhd on the ACE Market of Bursa Malaysia.
The shareholders voted in favour of the listing at an EGM today. The listing will be done via a special purpose vehicle, Tashin Holdings Bhd this year.
Tashin Steel is principally involved in the processing of steel coils into slit coils and steel sheets as well as manufacture of steel products including expanded metals products, flat bars, square bars, steel pipes, steel plates, checkered plates and C Purlins.
Prestar group managing director Datuk Toh Yew Peng said the proposed listing of Tashin Steel will provide a transparent valuation benchmark for the business of Tashin Steel at the same time enable Prestar to reduce its existing borrowings.
“The proposed listing of Tashin Steel will enable Prestar to unlock and crystallise the value of its investment in Tashin Steel since 1999 and enhance the shareholders’ value at the Prestar level,” he said in a statement.
After the listing of Tashin Steel, Prestar will continue to focus on its downstream manufacturing of material handling equipment such as racking for warehouses and third party logistic for e-commerce, wheelbarrows for palm oil plantation and guardrails for highway as well as the manufacturing and distribution of carbon steel pipes and tubes for various industrial and commercial usage.
Prestar intends to continue to expand the export of its products to Asean and the Middle East countries.
“It will also expand its manufacturing capacity of carbon steel pipes and hollow sections for supplies to furniture, office equipment manufacturing, engineering and fabrication usage,” said Toh.
The initial public offering (IPO) exercise involves the issuance of 59.33 million new shares in Tashin Holdings representing 17% of the enlarged share capital.
Of the 59.33 million new shares, 17.45 million new shares will be made available to the Malaysian public via balloting; 8.72 million new shares for the eligible directors and employees of Tashin Group and Prestar Group; 17.45 million new shares for the entitled shareholders of Prestar while the remaining 15.71 million new shares have been reserved for private placement to selected Bumiputra investors approved by International Trade and Industrial Ministry (Miti).
As part of its listing exercise, the existing shareholders of Tashin Holdings will also make an offer for sale of 55.49 million shares to selected investors and Bumiputra investors approved by Miti by way of private placement.
Proceeds from the IPO will be used mainly for capital expenditure to support Tashin Group’s business expansion into the production of wire mesh products and to upgrade the existing steel processing line.
Part of the proceeds will be used to purchase a piece of industrial land for the construction of a new factory and to supplement the working capital of the Tashin Group which includes the purchase of raw materials and to be used to defray listing expenses for the IPO.
M&A Securities is the principal adviser to Prestar and Tashin Holdings for the IPO exercise.
Source: The Sun Daily