Tenco proposes revamp to put it on a stronger footing

TENCO Bhd proposes to undertake a restructuring exercise that would involve the acquisition of a construction company and a property firm, debt-equity conversion and the transfer of its listing status. 

MSEB second board-listed Tenco manufactures and supplies industrial gases and chemicals and adhesives. 

Tenco said in a statement that Tanigra Sdn Bhd, a company controlled by businessman Tan Chew Piau, would buy its entire capital via an issue of 36.54 million new Tanigra shares. This works out to a share swap of 7 new Tanigra shares for every 10 Tenco shares held. 

As part of the restructuring, Tanigra would assume the listing status of Tenco.  

At the same time, Tanigra would buy Damansara Indah Sdn Bhd for RM121.1mil and Tanigra Construction Sdn Bhd for RM15mil. The purchases would be paid for via an issue of new shares at RM1 each.  

Both Damansara Indah and Tanigra Construction are also controlled by Tan. 

Tanigra Construction is a construction company, while Damansara Indah owns the Eastin Hotel and the 22-storey CP Tower office block in Petaling Jaya.  

However, CP Tower would not be injected into Tenco as it would be sold to a third party. 

Tenco said that as of end-March 2003, it had restructured term loans and outstanding interest of RM24.46mil and RM4.31mil respectively, with Tanigra tentatively proposing to settle the debt via an issue of 10 million new shares and RM7.122mil nominal value redeemable convertible secured loan stocks. 

On completion of the restructuring, Tan would hold 59.41 million shares or a 32.52% stake in Tanigra’s enlarged capital of 182.64 million shares. 

Tenco said it had been incurring losses in the past five years and the restructuring was aimed at placing it on a stronger financial footing via the injection of new viable businesses. 

Barring unforeseen circumstances, Tenco added that the restructuring was expected to be completed in the first half 2005. – AFX-Asia  

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