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Jin Lin shareholders approve reverse takeover by Gefung
Star Publications, 23 November 2006
KUALA LUMPUR: Premium marble manufacturer Gefung Holdings Bhd will take over the listing status of Jin Lin Wood Industries Bhd later this year.
The reverse takeover, approved by Jin Lin shareholders at an EGM yesterday, will see Jin Lin's entire paid-up capital of RM44mil comprising 44 million shares reduced to 8.8 million new Gefung shares of RM1 each.
Gefung will acquire Syarikat Bukit Granit Sdn Bhd (SBG) and Shanghai Ge Fung Marble & Granite Co Ltd (SGMG) by issuing 63 million new Gefung RM1 shares and 63 million irredeemable convertible preference shares (ICPS) of 10 sen each in Gefung at RM1 per ICPS.
Gefung will also issue 15 million new shares to Jin Lin's creditors and undertake a private placement of 5 million Gefung shares at RM1 each.
Jin Lin chairman Datuk Dr Sallehuddin Kassim said the re-listing of the company by Gefung paved the way for the new entity to capitalise on the growth of the dimension stone industry in China.
He said the utilisation of stone products in China for construction was expected to reach RM25bil in 2010.
Gefung was founded by Jeffrey Seo, who started SBG as a marble and granite manufacturer in Taiping in 1995.
SBG built a solid customer base by supplying products to key projects like the Prime Minister's Office, Putrajaya, KL International Airport, Putrajaya Mosque, Kuala Lumpur City Centre and Menara Public Bank.
Seo ventured into China and established SGMG after the 1997 financial crisis. High-end marble blocks are imported from the Middle East and processed for the Chinese high-end market.
SGMG's key projects in China include the Shangri-La Hotel in Pudong and Chengdu, Venetian Casino in Macao, Shanghai One Park Avenue Condominium and Beijing Children's Hospital.
SGMG and SBG recorded a combined pre-tax profit of RM9.5mil in 2003, RM16.7mil in 2004 and RM11.6mil last year.
