Singapore's SiS International to spin off and list mobile business in Hong Kong

Singapore - Homegrown technology firm SiS International Holdings said on Wednesday it plans to spin off its mobile distribution business and list it separately in Hong Kong.

SiS International, also listed in Hong Kong, has submitted the spin-off proposal for SiS Mobile Holdings to the Hong Kong Stock Exchange, which has confirmed that it may proceed with the plan.

SiS Mobile is the holding company of several subsidiaries that are principally engaged in the mobile phone distribution business in Hong Kong.

This would be the third distribution company of SiS International to be listed separately.

The spin-off will be done by way of a share offering and distribution in specie - a portion of the entire issued share capital of SiS Mobile will be allocated to existing shareholders in proportion to their respective shareholding in SiS International.

The terms have not been finalised.

SiS International chief executive K.H. Lim said the proposed spin-off and listing will enable SiS Mobile to directly and independently gain access to both equity and debt capital markets.

"SiS Mobile will enjoy enhanced flexibility to grow its business and an increased ability to make future acquisitions and investments by using its shares as consideration."

After the proposed spin-off and listing, SiS International will continue to hold an interest of not less than 50 per cent in SiS Mobile and SiS Mobile will remain a subsidiary of SiS International.

"Shareholders of SiS International Holdings will be able to enjoy greater shareholder value from the growth of SiS Mobile by maintaining a controlling interest over the spin-off group," Mr Lim said.