Aseana Properties proposes winding up by 2018

Malaysia- and Vietnam-focused property developer Aseana Properties has recommended shareholders to vote against a resolution to immediately cease trading and has instead proposed to slowly sell off its assets over the next three years.

Aseana, which launched in 2007, has always given shareholders to opportunity to review the future of the company at appropriate intervals, though it has stressed that going into liquidation would have a "significant adverse effect upon shareholder value".

It is obliged to put forward the so-called "discontinuation resolution" to a vote at its upcoming AGM on 22 June, but said it would not be in shareholders' best interest.

"Instead, the board believes that a policy of orderly realisation of the company's assets over a period of up to three years is a more appropriate approach in order to maximise the value of the company's assets and returns to shareholders, both up to and upon eventual liquidation of the company," Aseana said.

The group's new policy would enable it to sell all its assets in a "controlled, orderly and timely manner" by June 2018.

Investors welcomed the news on Friday, with shares up 10% at a 52-week high of 0.56p in afternoon trade.