Securities Commission says no to Yi-Lai's waiver application

KUALA LUMPUR (July 29): The Securities Commission (SC) has rejected Yi-Lai Bhd's waiver application for Aspen Vision All Sdn Bhd to comply with the regulator's requirement that Aspen Vision All must be an operating entity for at least three years.

In February this year, ceramic tile manufacturer Yi-Lai said it signed a heads of agreement with Aspen Vision Group Sdn Bhd and Setia Batu Kawan Sdn Bhd for Yi-Lai's planned acquisition of the entire stake in property developer, Aspen Vision All, for RM550 million.

Yi Lai said it intended to finance the acquisition by cash and by issuing new Yi-Lai shares. "The proposed acquisition will result in a significant change in business direction or policy of Yi-Lai, and will also result in a reverse take-over of Yi-Lai," Yi-Lai said then.

Today, Yi-Lai told Bursa Malaysia that Aspen Vision All was not able to meet the SC's requirement.

Yi-Lai said the SC had rejected Yi-Lai's application for the waiver to comply with the SC's requirement that "Aspen Vision and its subsidiaries must have been incorporated and operating in the same core business, over at least the profit track record period of at least 3 full financial years."

"The SC had, via its letter dated 27 July 2016 (which was received on 28 July 2016), not approved the waiver application," Yi-Lai said.

Yi-Lai's share trade has been suspended between 10:47 a.m. and 2:30 p.m. today, in conjunction with the announcement. Prior to the suspension, Yi-Lai shares were traded at 96 sen, for a market value of RM152 million. — theedgemarkets.com

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