SINGAPORE: The Board of Directors of Pacific Star Development Limited informed the shareholders that the Group intends to discontinue its aluminum business division, which is currently undertaken by two wholly-owned subsidiaries of the Company, being Durabeau Industries Pte Ltd and LH Aluminum Industries Pte. Ltd.[the_ad id=”31605″]The reasons for the Aluminum Business Discontinuance include, amongst others, the following: (a) the Aluminum Division accounts for a relatively small and insignificant proportion of the overall revenue of the Group; (b) the Aluminum Division has been facing strong industry competition and faces challenges in achieving profitability in the long run; and(c) the Group is of the view that its focus should be on property development and the Aluminum Business Discontinuance will free up resources and management time and attention to further support the Group’s property development business.
The Group intends for the Aluminum Business Discontinuance to take place by way of a creditors voluntary liquidation of both companies under the Aluminum Division. As at today, Durabeau Industries Pte Ltd and LH Aluminum Industries Pte. Ltd. have issued the required notices to their respective creditors for the creditors’ meetings that will take place on 30 May 2019.