KUALA LUMPUR: Beshom Holdings Bhd (Beshom) will take over the registration status of Hai-O Enterprise Bhd As part of a corporate exercise in which no one will focus on multi-level marketing, manufacturing, property while living or concentrating on wholesale and retail businesses.
In a statement to the Malaysian Stock Exchange yesterday, I-O said that the corporate realization would also include the proposed share exchange of up to 300.29 million shares in Hi-O with shares in no news on a one-to-one basis.
Upon completion of the proposed stock exchange, Beshom – which has been incorporated for organizational physical activity – will become the new holding company of Hi-O Enterprise and its subsidiaries.
The reference price of Beshom shares just listed on the stock exchange will be the last closing price of Hai-O shares on the market day prior to the trading suspension.
Hai-O’s main business is wholesale, multi-retail and retail marketing of herbal medicines, health products, health and beauty products, investment holding activities and asset holding activities.
After the proposed internal organization, the investment holding function and the operating business will be separated.
Garlic will become a vehicle that holds investments assuming the registration status of the Ai-O. Hai-O will continue to operate wholesale and retail of herbal medicines, health products, health products and beauty products.
“The Board of Directors believes that the proposed internal organization allows Beshem Group to achieve ease and flexibility in expanding new business sectors or streamlining business sectors as and when opportunities arise,” it said.
“The Beshom Group intends to further streamline the Group into separate identifiable business streams that better reflect the diverse activities of the Beshom Group.”
Once the streamlining operations are complete, Hi-O will focus on wholesale and retail. Beshom will focus on multi-level marketing, manufacturing, asset maintenance and more.
“The separation between the business divisions will provide greater flexibility for the business activity and will facilitate effective management of the various businesses to move forward,” it was written.
Chai-or expects the proposals to be completed / implemented by the third quarter of 2021.