SINGAPORE - Mainboard-listed Ziwo Holdings said on Friday (Dec 8) it will seek approval from shareholders at an extraordinary general meeting on Jan 2 next year to change its business to focus exclusively on opportunities in green energy in China and South-east Asia.
The move, it said, reaffirms its intention to exit its loss-making raw materials production business in China and to pursue more green-energy projects in the region.
Ziwo is also seeking shareholders' approval to be renamed BM Mobility Ltd, which is short for Bring More Mobility. It said the proposed new name better reflects its focus on the electric auto industry and on eco-friendly personal mobility transport.
The company's existing green-energy projects, initiated this year, involve the installation and operation of charging stations for electric vehicles in China and the sale of electric scooters in Malaysia.
These projects are undertaken by two companies owned by Singapore-based Estar Investments Pte Ltd, an investment holding firm in which Ziwo has a 65 per cent stake. With the proposed change of business, Estar Investments' two subsidiaries, Beijing E-Star Electric Technology Co Ltd and BM Mobility Sdn Bhd, will be Ziwo's main operating entities.
Ziwo also said it will seek to expand its pipeline of green-energy projects as well as service capabilities, which may include assembling electric two-wheelers. It will also consider investing in assets or businesses in green energy.
As earlier disclosed on Sept 29, 2017, Ziwo said it intends to issue up to nearly 936 million warrants on the basis of two warrants for every ordinary share held. At an issue price of 0.33 Singapore cent each, the warrants will raise net proceeds of S$2.94 million if fully subscribed.
Each warrant can be converted into an ordinary share at a price of 1 Singapore cent within three years from the date of issuance. Ziwo said the rights issue is not underwritten as it believes the issue price for each warrant and the exercise price are sufficiently attractive. Existing shareholders will not face any dilution if none of the warrants is exercised.
Ziwo shares were trading at 1.8 Singapore cents, down 0.1 cent or 5.3 per cent, as at 1.20pm, on Friday.