Singapore bid for MKI
A SINGAPORE rescue may mean a last-minute reprieve for the MKI Corp, which was facing a winding up order in Hong Kong today.
Under the long-awaited plan, Hong Fok Corp, a majority owner of Hong Kong-listed Winfoong Investment, and which is quoted in the republic, has proposed a scheme of arrangement to create a new holding company for MKI.
The proposals would mean that MKI would cease to be listed on the exchange and the new company - Newco - which would hold MKI's entire share capital, would be listed on the exchange by way of introduction.
Also to be injected into the new company would be some building and construction interests of Hong Kong public housing specialists Sui Chong Group, controlled by Hong Fok and Winfoong, and 'additional companies'.
Others including approvals and waivers from the regulators such as the exchange and the Securities and Futures Commission (SFC) - as well as consent from shareholders of Hong Fok, Winfoong and MKI.
Reasons for and details of the scheme of arrangement have not been mentioned, although market sources said a rescue bid for MKI was to retain its listing status on the stock exchange.
Trading in MKI shares on the Hong Kong stock exchange has been suspended since June last year following an suspension order issued by the SFC, which issued a court petition for the winding up of MKI six months later.
'If at any time an order is made by the court to wind up MKI, all rights, obligation and liabilities of the parties will cease . . .,' an announcement jointly issued by Winfoong and MKI said.
A deadline of September has been set for the conditions to be fulfilled.
