Warning over shareholding

THE Lippo group's Asia Securities International Ltd (ASIL) faces suspension of its shares if it does not increase its public shareholding to the minimum 25 per cent requirement.

The stock exchange yesterday gave the company's directors until June 9 to submit a plan for increasing its public shareholding to the minimum from 16.32 per cent.

Lippo has an 57.86 per cent stake in ASIL, while Chinachem's Nina King holds 25.86 per cent.

Last year Lippo and Chinachem fought a bitter takeover battle for the company with Lippo winning and Chinachem turning to the Securities and Futures Commission.

Chinachem has been a long-term shareholder in ASIL and has many existing joint-venture property development agreements with the company.