Singapore-listed concrete and cement trader Pan-United Corporation has announced a proposed de-merger of its wholly-owned subsidiary, Xinhua Port Holdings, the holding company of group’s ports business, as a separate listed entity.
Following the de-merger, the new Pan-United Group and Xinghua will operate as independent entities.
The group said the move will allow the respective management teams to better focus on their core business and it is the intention of the group to apply for listing of and permission to deal in the shares of Xinghua on the Hong Kong Stock Exchange.
As part of the de-merger, Xinghua plans to capitalise an existing $102m inter-company loan extended by Pan-United into newly issued Xinghua shares.
Xinghua also intends to issue new shares comprising up to 5 per cent of its enlarged share capital under an incentive scheme that will benefit select employees and certain business partners.
Xinhua Port Holdings’ business mainly focuses on the management of operation of two river ports in Changshu, Jiangsu in China.
In October 2016, Pan-United sold off its shipping subsidiaries, Pan-United Shipping and P.U. Vision, which owned 12 tugboats and 10 barges for the transportation of dry cargo around Southeast Asia.