Red Sena still seeking QA before Dec 10 deadline

March 22, 2018 | By | Reply More

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PETALING JAYA: Red Sena Bhd, the first food and beverage (F&B) special purpose acquisition company(SPAC) in Malaysia, has not given up hope in securing its qualifying asset (QA) in the branded packaged food segment ahead of a looming deadline on December 10, 2018.

Its executive director and CEO Joseph Tan Eng Guan told reporters after its AGM that the company has seen at least 50 companies but nothing concrete has materialised.

He, however, alluded that Red Sena has narrowed down to a “handful” of companies for potential acquisition. A local daily reported that Red Sena is eyeing a takeover of wafers, biscuits and confectionery product producer, Munchy Group.

Citing Red Sena’s engagements with business owners as being governed by “non-disclosure arrangements”, Tan said it puts the company in a place of being unable to divulge details on the parties it “has spoken to”.

“We are aware the deadline is drawing close, in the event that there should be no QA, we will have to liquidate the company and return the money to shareholders,” he said.

He added that the company has until the third quarter of this year to sign a sale and purchase agreement(SPA) albeit a last practicable window to establish an agreement being at the end of March.

Red Sena raised RM400 million through the issuance of 800 million shares through its initial public offering (IPO) in December 2015, of which RM368 million has been put into a cash trust account as required.

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