SINGAPORE (Oct 12): Lian Beng Group, the construction company and property developer, is exploring a possible spinoff of its property development business with a listing on the Catalist board.

The Singapore Exchange today also informed the group it has no objection for the proposed spinoff.

In a Thursday night filing, Lian Beng says the proposed spinoff and listing will provide a transparent valuation to benchmark the property development business.

It will also allow the property development business be financially independent and raise the funds required for without relying on the group’s financing.

The spinoff also means senior management personnel of each group can focus their attention on their assigned business segments and deliver the best possible value to the respective shareholders.

Lian Beng says it is in the process of finalising the terms of the proposed spinoff and proposed listing.

“In the event that the company is required to seek shareholders’ approval for the proposed spinoff and listing, it will convene an extraordinary general meeting in due course,” adds the group.

In a separate filing earlier on Thursday, Lian Beng reported earnings of $8.9 million for the 1Q18, down 29.4% from $12.7 million in 1Q17 due to lower profits from its construction segment.

Revenue for the three months to Sept nearly halved to $37.2 million from $70.8 million a year ago due to a decrease in revenue from the construction segment.

This article, written by PC Lee, first appeared in The Edge Singapore.