GKC may see change in control

PUBLISHED : Saturday, 04 July, 1998, 12:00am
UPDATED : Saturday, 04 July, 1998, 12:00am

Discussions are under way between controlling shareholders of kitchen refurbishment materials trader GKC Holdings which might lead to a change in control.

The company yesterday requested a suspension in its share trading at the beginning of the afternoon session and said it would make an announcement relating to liquidity and the shareholder discussions.

The move surprised market observers because GKC had been listed for less than seven months and raised $125 million through a public offering of 125 million shares.

The company was perceived to have strong backing because 28.8 per cent of its issued capital was owned by Beijing's China International Trust and Investment Corp through wholly owned subsidiary Shortbridge.

Its listing prospectus suggested outstanding bank borrowings of $429 million as of September 31, $404 million of which was short-term trust receipts and import loans.