Golik to rescue Daido
Steel and construction-materials maker Golik Holdings has reached a conditional agreement to rescue and take control of debt-troubled Daido Concrete (HK).
Golik chairman Pang Tak-chung said yesterday more than 20 parties, including 17 bank creditors and other bond and preference shares holders, had agreed to restructure Daido's debts of more than $1 billion with a haircut.
Mr Pang said the restructuring plan would involve debt reduction and closure of loss-making businesses.
'Daido actually has a couple of profitable operations, including light-weight concrete manufacturing, which would have synergy with some of Golik's businesses,' he said.
He pointed out the Housing Authority was a big customer of Golik's welded wire mesh and Daido's light-weight concrete.
Finance director Sammy Ho said Golik had arranged bank financing to fund the rescue bid, and that he was confident Daido would not post significant pressure on Golik's bottom line.
He expected Golik's shares would resume trading shortly upon an announcement on the deal.