Published August 19, 2008

JAHJ to list on Japan's Jasdaq via share swap

Japan Land-linked firm made deal with associate ATL

By LYNETTE KHOO
Email this article
Print article
Feedback

JAPAN Asia Holdings (Japan) (JAHJ), a Japan Land-linked company, has entered into a share swap agreement with its 39.1 per cent associate ATL Systems, which is listed on Tokyo's Jasdaq board.

This finally provides a backdoor listing opportunity for JAHJ, which has mulled the idea of listing since 2003 but had a botched attempt in an initial public offering in 2005.

Singapore-listed Japan Land is expected to make an announcement today, after halting trading of its shares yesterday afternoon. ATL filed the announcement with Jasdaq yesterday.

According to the filing, ATL will issue new shares in exchange for JAHJ shares. On completion of this, the listed JAHJ will have a market value of 36 billion yen (S$461 million). ATL now has a total market value of 936 million yen (S$12 million), based on data on the Jasdaq website.

After the share swap, ATL will spin off its current business in software development & research, network maintenance and solutions consultation services into a new private entity, ATL said in the filing.

BT understands that after the transaction, JAHJ will enter into a probational trading period under which it is to fulfil the listing requirements of Jasdaq within three years.

Japan Land owns an effective stakeholding of about 14.13 per cent in JAHJ both directly and indirectly through its 15.64 per cent stake in Japan Asia Holdings (JAH), which owns 44.27 per cent of JAHJ.

Japan Land is now the target of a takeover bid by tycoon Oei Hong Leong to buy the shares that he does not already own at 60 cents a share. Mr Oei currently owns a 4.01 per cent stake in Japan Land. He also intends to make an offer for all of Japan Land's outstanding warrants.

Another company of Mr Oei, International Capital Investment Ltd (ICIL), which he has taken private in May, owns an effective stakeholding of 9.26 per cent in JAHJ via direct stakes of 4.72 per cent in JAHJ and 10.25 per cent in JAH.