Sarine pushes for restructuring by breaking up its two founding shareholding firms

The shares are locked-up until August.

Sarine has announced the break-up of its two founding shareholding structures. These are Sarin R&D, which holds a 28.7% stake, and Interhightech, which holds a 12.7% stake.

Sarin R&D comprises seven manufacturing and trading holding companies and Interhightech is made up of
four personal-holding companies.

According to Maybank Kim Eng, following the above restructuring, only two founding entities, Hargem Ltd and Stark Hanoh Holdings, both originally under Sarin R&D, will appear as substantial shareholders, with about 7.0% and 7.3% stakes respectively. 

Here’s more from Maybank Kim Eng:
Executive Chairman, Mr Daniel Glinert, and CEO, Mr Uzi Levami, both originally under Interhightech, will hold about 3.5% each. The shareholders have agreed to a lock-up period till Aug 2015. Sarine will implement a mechanism to limit the sale of these shares after the lock-up.

While some investors may fret that the above move was made to facilitate the exit of its founding shareholders, we believe it had been well-flagged and will not affect Sarine’s share price.

It should allow the founding shareholders to monetise their investments for retirement and wealth distribution. Many of them are getting on in years and are no longer involved in the business. The restructuring is also unlikely to have any adverse impact on the business. On a more positive note, it could improve the stock’s trading liquidity.