Thursday 28 Mar 2024
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KUALA LUMPUR (March 20): Prestar Resources Bhd had today obtained shareholders' approval for the proposed listing of its 51%-owned subsidiary Tashin Steel Sdn Bhd via special purpose vehicle Tashin Holdings Bhd on Bursa Malaysia's ACE Market.

Prestar had obtained its shareholders' approval at the company's extraordinary general meeting (EGM) here today. Prestar group managing director Datuk Toh Yew Peng said in a statement in conjunction with the EGM that the proposed listing of Tashin Steel will provide a transparent valuation benchmark for the business of Tashin Steel and 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," Toh said.

Speaking to reporters covering the EGM, Toh said Tashin Steel's listing will definitely be done this year. "We will have to properly manage the timing of the launch," he said.

According to Prestar's statement, Tashin Steel's initial public offering (IPO) involves the issuance of 59.33 million new shares in Tashin Holdings. Prestar said the 59.33 million new shares represent 17% of the enlarged share capital in Tashin Holdings.

"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; to purchase a piece of industrial land for the construction of a new factory; 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," Prestar said.

M&A Securities Sdn Bhd is the principal adviser to Prestar and Tashin Holdings for the IPO, according to Prestar.

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