PETALING JAYA (June 25): The Singapore Exchange Securities Trading Limited has granted Texchem Resources Bhd, the majority shareholder of Texchem-Pack Holdings (S) Ltd (TXPH), an extension until August 7 to make a reasonable exit offer to TXPH’s shareholders or risk being compulsorily delisted.

In a filing with Bursa Malaysia today, Texchem (fundamental: 0.75; valuation: 2) said the Singapore Exchange had notified TXPH yesterday that Texchem, which holds a 70.48% stake in TXPH, has until August 7 to make a reasonable exit offer to TXPH's shareholders.

This is the third extension of time granted by the Singapore Exchange to Texchem to make a reasonable exit offer to TXPH's shareholders, after the authority issued a delisting notification to TXPH on March 5, 2014.

According to previous announcements, TXPH was placed on the Singapore Exchange’s watch-list on March 5, 2012 and the company was given two years from the date to regularise its financial position.

TXPH had incurred pre-tax losses (excluding exceptional or non-recurrent income and extraordinary items) for three consecutive financial years from 2009 to 2011.

As TXPH had not achieved profitability within two years from March 5, 2012, the company was slapped with a delisting notification.

TXPH applied for an extension on April 3, 2014 to make the necessary financing arrangements to commence the delisting exercise and was granted an extension until Oct 7, 2014.

TXPH then made another request for extension, and was granted a second extension until April 7, 2015 to make the necessary exit offer.

However, Texchem’s board said on April 7 this year that TXPH was in the process of appointing a valuer and independent financial officer to determine the value of its assets and subsidiaries to reach an exit offer.

As such, TXPH had on April 2, 2015 applied to the Singapore exchange for another extension of three months to complete the process.

At 10.27am, Texchem shares remain unchanged at RM1.49, with 1,000 shares traded.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)