China Gaoxian to resume trading on Sept 18 under new management, new investor

File photo from June 19, 2012 showing some of the shareholders and management of China Gaoxian Fibre Fabric holding discussions after the AGM at Suntec City.

Mainboard-listed China Gaoxian Fibre Fabric Holdings, which supplies premium differentiated fine polyester yarn and warp knit fabric in China, announced that its shares will resume trading on Sept 18.


Get the full story from The Straits Times.

Here is the media statement from China Gaoxian Fibre Fabric Holdings Ltd:

China Gaoxian set to resume trading on Sept 18, 2013

Singapore Exchange Mainboard listed, China Gaoxian Fibre Fabric Holdings Ltd. ("China Gaoxian", the "Company" or collectively, the "Group"), a leading supplier of premium differentiated fine polyester yarn and warp knit fabric in the PRC, announced that the first tranche of the Proposed Investment by Fleur Capital (s) Pte. Ltd. ("Fleur")) is scheduled to be completed on September 18, 2013 ("Completion Date") as the conditions precedent under the Implementation Agreement between the Investor and the Company have been fulfilled and/or waived.

Resumption of Trading

The Group has also obtained an in-principle approval from SGX-ST for the resumption of the trading of the Company's Shares on the SGX-ST ("Resumption of Trading") on the same day as Completion Date, subject to the completion of the first tranche of the Proposed Investment.

Mr Jerome Tham Wan Loong, Interim Chief Executive Officer ("CEO") of China Gaoxian commented: "This is a momentous milestone for the Company. The journey over the past two and a half years has been challenging. I would like to thank our shareholders for their patience and unwavering support throughout this period. We can now look forward to a new chapter and I wish the new management success in bringing the Company to greater heights."

Warrants Issue and Conversion of KDRs into Shares

In conjunction with the completion of the First Trance of the Proposed Investment, Shareholders of the Company will be issued Warrants based on the terms set out in the Company's Circular dated May 29, 2013 ("Circular"). Books closure for determining Shareholders' entitlement to the Warrants will be 5 pm on September 10, 2013 ("SGX Record Date") and on Completion Date, Fleur will also be issued 117,500,000 Warrants in accordance with the terms of the Circular. All the Warrants will be listed and quoted on the SGX-ST on or about September 20, 2013.

KSD (or its nominees), as the registered holder of the Shares underlying the KDRs, will be issued the Warrants to hold on the KDR Holders' behalf and KSD will determine the KDR holders' entitlement to the Warrants two business days after the delisting of the KDRs ("KDR Record Date"). Conversion of the Company's KDRs into Shares and vice versa will be restricted from SGX Record Date to the KDR Record Date in accordance with the Circular.

As the amount of time needed to finalise the KDR Record Date cannot be predicted, KDR holders who wish to trade the Shares underlying the KDRs and the Warrants on SGX-ST and/or exercise their rights with respect to the Warrants as soon as possible after Resumption of Trading are advised to have their KDRs converted into Shares prior to September 10, 2013. As crediting of the converted Shares to the KDR holder's designated CDP account will take time (please see Annex 1 for more details), KDR holders who wish to do so should contact their brokers immediately.

Upon completion of the KDR conversion process, the KSD or its nominees will credit the relevant Shares underlying the KDRs to the KDR holders' respective CDP accounts.

Board and Management Reorganisation

In connection with the Resumption of Trading, a new Board of Directors will be constituted on Completion Date.

Mr Cao Xiangbin and his associates, including Mr Liu Yilin and Mr Chen Fen have also stepped down from their positions as directors, general managers, legal representatives and/or bank signatories of the Group companies.

In accordance with the Circular, Fleur will be putting in place a new management team and the Company will be appointing Mr Liu Dehuang as new Chief Executive Officer and Ms Liu Minqin as new Chief Financial Officer, respectively, on the Completion Date. New legal representatives and general managers have also been appointed at the Company's subsidiaries in China.

"I have full confidence in the new management as they are experts and professionals in their own fields. When they take over, I believe that the shareholders can expect the Company to be steered towards a brighter future. I would like to thank the Board members for their leadership and the professionals who have assisted us in our efforts to revive China Gaoxian successfully and give it a second chance", Mr Tham concluded.

 

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