QAF, a maker of bread, bakery and confectionery products, on Wednesday said it plans to list its pork production and feedmilling business on the Australian Securities Exchange.
The proposed listing will involve an listing of shares in QAF's wholly-owned subsidiary, Hamsdale Australia Pty Ltd (to be renamed Rivalea Ltd), or any other wholly-owned subsidiary of the group and its subsidiaries (Australian Listing Group).
QAF intends to retain a controlling interest in Hamsdale, proposed to be renamed Rivalea Ltd, at not less than 51 percent immediately after the proposed listing.
The company also intends to undertake an internal restructuring exercise to streamline and rationalise its primary production business, including consolidating its Australian properties, it said in a statement.
QAF sells the Gardenia brand of bread in Singapore, Malaysia and the Philippines, and also owns a pork production business in Australia.
QAF said that it could recognise a gain of S$8.5 million to its equity after the listing of 49 per cent of its interest based on various assumptions.
In connection with the proposed listing, QAF also expects to receive approximately A$52.0 million from the repayment of unsecured loans extended by the group to the Australian Listing Group for working capital purposes.
QAF plans to use proceeds from the listing for expansion and development of the its other core businesses, new business opportunities, among others.
QAF, through its wholly-owned subsidiary, Oxdale Dairy Enterprise Pty Ltd, owns three properties in Australia that are leased out for rental income.
The proposed listing is conditional upon shareholders' approval at an extraordinary general meeting to be held on October 6.
Shares in QAF rose 2 percent to S$1.23 on the Singapore Exchange.
