22nd May 2015 07:37
LONDON (Alliance News) - Aseana Properties Ltd Friday proposed changing its investment policy into a divestment policy with the aim of winding up the company in 2018 ahead of its annual general meeting, with the majority of shareholders already supporting the proposals.
The company has a policy that allows shareholders to "review the future" of the company at certain intervals, which will result in shareholders voting at the AGM on whether the business should cease trading or continue. The meeting will be held on June 22.
"The board firmly believes that ceasing to trade and placing the company in liquidation at this time would have a significant adverse effect upon shareholder value. Whilst the board is obliged to put forward the Discontinuation Resolution at the AGM, it does not consider that ceasing to trade at this time is in the best interests of shareholders," it said in a statement.
Instead, the company laid out plans for the company to continue trading for a further three years which will "maximise the value of the company's assets and returns to shareholders, both up to and upon eventual liquidation of the company," it said.
In its plans that have been sent to shareholders, Aseana proposed chaging its investment policy into a divestment policy to balance shareholder returns and and maximise the value of its assets, adding it ends to "complete the disposal of the company's assets by June 2018," it said.
The company will not make new investments, but may make further investments in the RuMa project in order to optimise value and assist in its eventual realisation. If any further investment is made in the RuMa project, the net proceeds of the project will be returned to shareholders.
Aseana said it intends to appoint Nicholas Paris to the board if the divestment policy is not approved. Paris is a representative of LIM Advisors Ltd, which is a "substantial" shareholder in the company.
Shareholders with a combined stake of 81.1% in the company have already given their irrevocable undertaking to vote in favour of the resolutions, the company said.
Aseana shares were up 2.9% to 0.525 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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