KUALA LUMPUR: Beshom Holdings Bhd (Beshom) will take over the listing status of Hai-O Enterprise Bhd under a corporate exercise where Beshom will focus on multi-level marketing, manufacturing, property while Hai-O will concentrate on wholesale and retail business.
In a statement to Bursa Malaysia on Tuesday, Hai-O said the corporate exercise will also involve a proposed share exchange of up to 300.29 million shares in Hai-O with new Beshom shares on a one-for-one basis.
Upon completion of the proposed share exchange, Beshom – which was incorporated for the corporate exerecise – will become the new holding company of Hai-O Enterprise and its subsidiaries.
The reference price of the newly listed Beshom shares on Bursa Securities shall be the last closing price of Hai-O shares on the market day prior to the suspension of trading.
Hai-O's core businesses are wholesaling, multi-level marketing and retailing of herbal medicines, healthcare products, wellness and beauty products, investment holding activities and property holding activities.
After the proposed Internal reorganisation, the investment holding function and the operating business will be separated.
Beshom will become the investment holding vehicle assuming the listing status of Hai-O. Hai-O will continue to operate the wholesaling and retailing of herbal medicines, healthcare products, wellness and beauty products.
“The board is of the view that the proposed internal reorganisation enables Beshom Group to achieve ease and flexibility in the expansion of new business segments or streamlining of business segments as and when the opportunities arise, ” it said.
“Beshom Group intends to further streamline the group to have separate identifiable business streams which better reflects the diverse operations of Beshom Group, ” it said.
On completion of the streamlining operations, Hai-O will focus on wholesale and retail. Beshom will concentrate on multi-level marketing, manufacturing, property holding and other.
“The separation of the business divisions will also provide greater flexibility for business operations and facilitate an effective management of the different businesses moving forward, ” it said.
Hai-O expects the proposals to be completed/implemented by the third quarter of 2021.