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With Chinese mining operations stymied, AsiaPhos mulls business restructuring
CATALIST-LISTED phosphate miner AsiaPhos is weighing a restructuring exercise to restore its financial position, the board announced on Wednesday night.
The potential restructuring, which could include buying other businesses, follows an interruption of the group's mining operations in China on the back of regulatory issues there.
The board warned that negotiations and arbitration with the Chinese government over the closed mines "may take years to settle and require substantial funding".
Given the ongoing arbitration, the planned restructuring could "transform the company into a more suitable listing platform for new assets/business", it added.
AsiaPhos confirmed that it will comply with Catalist rules, including getting shareholders' approval for potential acquisitions, where applicable.
Still, it advised shareholders to exercise caution in trading their shares as there is no certainty that the restructuring and potential acquisition will materialise.
"Shareholders should also note that the terms and conditions for the restructuring and the potential acquisition are currently being discussed and negotiated and that no definitive terms have been agreed upon and that it is not certain that parties to the transaction will agree on mutually acceptable terms and conditions," the board added.
AsiaPhos shares closed unchanged at 1.9 Singapore cents before the announcement.