Tuesday, June 23, 2009

John Master proposes to sell entire business via open tender

Apparel manufacturer John Master Industries Bhd (JMI) is proposing to sell its entire business and undertakings, including all of its assets and liabilities, via an open tender process to be satisfied wholly in cash.

The company has also proposed a capital repayment via a capital reduction exercise and/or cancellation of retained earnings and/or share premium reserves.

In a filing to Bursa Malaysia on June 23, JMI said the disposal could only be determined based on the winning bid upon completion of the open tender. It appointed Ferrier Hodgson MH Sdn Bhd (FHMH) as the independent tender administrator to manage the open tender.

Concurrently with the open tender, the company wil appoint an independent financial valuer (IFV) to undertake an independent valuation of the businesses of JMI and its subsidiaries, which will be considered by the Board prior to determining the winning bid.

The entire proceeds resulting from the proposed disposal will be utilised for the purposes of returning capital to the shareholders of JMI pursuant to the proposed capital repayment, the company said.

JMI said the proposed disposal was after taking into consideration factors including the uncertain outlook of the company's future financial performance as well as the challenging outlook and prospects of the industry in which the company operates.

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