Construction firm Lum Chang Holdings L19 plans to spin off its interior decoration subsidiary Lum Chang Interior (LCI) for its own separate listing on the Singapore Exchange S68 .
In a filing to the exchange, Lum Chang says it may then undergo a distribution in specie of LCI shares to Lum Chang shareholders.
Lum Chang now holds 80% in LCI, with the remaining under Lim Thiam Hooi, who is also the managing director and co-founder of LCI.
According to Lum Chang, LCI has seen "strong growth" in recent years. For the year ended June, LCI has won new contracts with yet to be recognised worth of some $177.8 million.
Lum Chang believes that the spin-off will help "unlock" the potential value of LCI and be weighed separately versus the other existing businesses of construction and property development and investments.
Lum Chang was recently in the news when its managing director David Lum Kok Seng was named as an individual who had dealings with former minister S Iswaran.
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Iswaran was on Oct 3 sentenced to 12 months jail for obtaining valuables worth $403,300 and for obstructing justice.
On his part, prosecutors will not be tendering any charges on Lum.
Lum Chang shares last traded at 31 cents as at Nov 21, down 7.58% year to date.
