KUALA LUMPUR: The last special-purpose acquisition company (SPAC), RED SENA BHD, has to close shop after receiving an unanimous decision from its shareholders to wind up.
In a meeting yesterday, a total of 641.97 million shares or 100% of the shareholders had voted to wind up and liquidate the company.
According to Red Sena executive director and chief executive officer Joseph Tan Eng Guan, it would take about 30 days for the liquidation process to take place, which would see the distribution of cash in the trust account to its shareholders.
He said the distribution would be close to 52 sen a share.
“The number is subject to final determination by the liquidators,” he told StarBiz on the sidelines of the shareholders’ meeting.
As at Dec 17, the cash in trust assets and the non-cash trust assets stood at RM404.46mil and RM16.91mil, respectively.
Red Sena had raised proceeds of RM400mil from its initial public offering in December 2015, from selling 800 million shares with detachable warrants at 50 sen apiece.
Shares in Red Sena were suspended from trading yesterday.
An estimated 92% or RM368mil from the total proceeds had been set aside for the purchase of a qualifying asset (QA).
Red Sena had been earlier seen as the most promising among the SPACs listed on Bursa Malaysia to graduate from its status and become a full-fledged food and beverage (F&B) company.
As a SPAC, the management of Red Sena was given three years to secure a QA to anchor the company as its main business.
Although Red Sena failed to secure its QA, shareholders are positive on the management’s decision to wind up the company and their efficiency in managing the trust account.
“As a shareholder, I respect their decision as we also do not want them to overpay or buy assets for the sake of doing a deal.
“The trust account yielding high rates has shown that the management is very efficient,” a shareholder told StarBiz.
Red Sena was the third unsuccessful SPAC to be delisted from Bursa Malaysia out of five companies that had tried their luck with the SPAC route since the introduction of this investment model in late 2009.
The other SPACs that had failed were Cliq Energy Bhd and Sona Petroleum Bhd, while the two SPACs that have successfully transformed to full-fledged Main Market-listed companies are HIBISCUS PETROLEUM BHD and REACH ENERGY BHD.
Red Sena had earlier explained to its shareholders at its annual general meeting last year that it had screened more than 50 potential candidates for its QA.
In March last year, StarBiz reported that Red Sena was eyeing a takeover of the Munchy Group to go into the F&B business.
That, however, did not materialise as private equity firm CVC Capital Partners Ltd swooped in to acquire a 100% stake in Munchy Food Industries Sdn Bhd on June 8 for US$250mil (RM998mil). Without a QA and with time running out, Red Sena was in a bind.
“We already made the explanations, it is not just about the strength of the company’s management, but there are other issues like market conditions and valuations.
“The chapter is already closed,” it said.