KIG Glass changes adviser for reverse takeover

AmMerchant Bank Bhd resigned on 1 June 2006 as the adviser to KIG Glass Industrial Bhd for a proposed reverse takeover. KIG informed Bursa Malaysia on 2 June 2006 that it was finalising the appointmen…

AmMerchant Bank Bhd resigned on 1 June 2006 as the adviser to KIG Glass Industrial Bhd for a proposed reverse takeover. KIG informed Bursa Malaysia on 2 June 2006 that it was finalising the appointment of another adviser. On 11 May 2006, KIG entered into a restructuring agreement with Permintex Holdings Sdn Bhd (PHSB) and Permintex Bhd, a unit of PHSB. The agreement was for PHSB to undertake a reverse takeover of KIG via Permintex. KIG said it had about one month from 2 June 2006 to submit the regularisation plan as proposed on 11 May 2006 for approval from the relevant authorities. Under the restructuring agreement, Permintex would acquire PHSB“s stakes in Permintex Industries Sdn Bhd (PISB), Permintex Sanko Technologies Sdn Bhd (PSTSB), Permintex Electronic Sdn Bhd (PESB) and Permintex Research & Development Sdn Bhd (PRD) for MYR 83.16 million. The purchase consideration would be satisfied through 166.32 million new MYR 0.50 shares in Permintex to PHSB. KIG“s paid-up of 163.03 million MYR 1 shares would be reduced to MYR 8.15 million under a share capital reduction of MYR 0.95 or 95% for every existing KIG share. It was proposed that 20 MYR 0.05 shares would be consolidated into one share resulting in 8.15 million consolidated shares. The move would give rise to a credit of MYR 154.88 million which would be used to reduce KIG“s accumulated losses. On completion of the proposed capital reduction and the proposed consolidation, each consolidated share would be exchanged for two new Permintex shares. This would result in the issue of 16.30 million new Permintex shares for a total value of MYR 8.15 million, to KIG“s existing shareholders. As a result, KIG would become a unit of Permintex.