SINGAPORE - Boustead Singapore is considering demerging its real estate solutions business from the rest of the group and spinning it off as a separately listed company.
This business is currently undertaken primarily by its wholly-owned subsidiary, Boustead Projects.
It is envisaged that the proposed demerger would involve restructuring and consolidating Boustead Singapore's real estate solutions business under Boustead Projects, followed by a distribution in specie to the shareholders of Boustead Singapore.
The shares of Boustead Projects will subsequently be listing on the mainboard by way of an introduction.
This exercise is designed to unlock value for Boustead Singapore shareholders and to enable them to participate directly in the equity of Boustead Projects.
The board of directors noted that the proposals are at a preliminary stage.
"No decision has been made as to whether the proposed transactions will take place," said Boustead Singapore.
Boustead Singapore shares eased three cents to $1.785.