Trading in its shares have been suspended since September 2021; the company has also not met criteria to exit watch list
UNITED Food Holdings clarified on Wednesday (Aug 21) that Singapore Exchange Regulation (SGX RegCo) would delist it for its failure to address the concerns raised in an Aug 5 special report by its auditors, KPMG.
The company said that it had asked SGX RegCo for more time and provided supplemental information in response to the concerns raised in the report, but that the regulator had found that the information given did not address the concerns.
United Food said that because it was unable to address those concerns, and also because it fell short of the criteria to exit the watch list, SGX RegCo would delist it.
United Food’s clarification comes just a day after its bourse filing on Tuesday, which announced that it had received a notice from SGX RegCo on Aug 14 about its delisting. The company had said on Tuesday that it had been asked to provide updates via SGXNet on the status of the its exit offer proposal.
Under SGX’s listing rules, the company or its controlling shareholders are required to make a fair and reasonable exit offer to shareholders no later than one month from the date of the notification of delisting.
The issues highlighted in KPMG’s special audit related to several “unusual” cash transactions and potential contraventions of SGX listing rules.
Shares of SGX watch-listed United Food Holdings have been suspended from trading since September 2021.
