Proview International plans a comeback
Proview International hopes to stave off delisting from the Hong Kong stock exchange and jump-start its moribund operations by acquiring an undisclosed "profitable business", which is also in the electronics industry.
The company is the parent of Proview Technology (Shenzhen), which received a record US$60 million payout from technology giant Apple in June to settle their long and acrimonious dispute over its "iPad" trademarks on the mainland.
In a filing with the Hong Kong stock exchange earlier this month, Proview International chairman Sun Min said the company has engaged merchant bank Yu Ming Investment Management as financial adviser to assist in its efforts to comply with the Listing Rules and resume trading of its shares.
The proposed acquisition, if approved, could breathe new life into Proview International, which went public in June 1997.
Despite the big payout from Apple, the company's debt-mired Shenzhen subsidiary went up for liquidation in October after losing to creditor Fubon Insurance in a case tried in Guangdong province.
Proview International's shares have been suspended from trading at its request since August 2010, as the computer monitor manufacturer scrambled to restructure and sell off its principal assets on the mainland to pay its debts. Its Shenzhen subsidiary filed for bankruptcy later that year.
On December 30 last year, the Hong Kong stock exchange placed Proview International in the third and final stage of delisting procedures as stipulated in Practice Note 17 to the Listing Rules. It said the firm failed to provide a "resumption proposal to demonstrate it has sufficient operations or assets for listing".
Proview International filed its proposal on June 13, but was rejected by the Hong Kong stock exchange on September 14 for not satisfying requirements under the Listing Rules.
Yu Ming, a wholly owned company of main board-listed Allied Group, has submitted on Proview International's behalf a revised resumption proposal that addressed the Listing Committee's concerns. It said Proview International's targeted corporate acquisition has been in business for more than three years, with audited after-tax net profit reports from 2009 to 2011, has experienced management and has been under the same ownership in the past financial year.
The review hearing, which had already been rescheduled for December 18, was postponed to a later date by the Listing Committee due to insufficient members to form a quorum.