PETALING JAYA: SCOMI GROUP BHDwhich faces the chance of being delisted after its request for extra time to submit a regularization plan was rejected, desires to be allowed to make a direct submission to Bursa Malaysia with a view to current its distinctive plan to regularize its financials.
The loss-making engineering agency stated it’s engaged on a “self-rescue” plan, which not solely is totally different from a typical regularization plan however will even not result in a extreme dilution within the shareholding pursuits of minorities.
“This impacts some 20,000 of our shareholders and we urge Bursa Malaysia to permit us the chance to current the complete plan as what was submitted earlier was restricted,” an government linked with the corporate advised StarBiz.Not like a white knight asset injection route that PN17 standing corporations sometimes undertake, the manager stated Scomi is trying to resuscitate its operations through bringing in new tasks to generate adequate income, thus profitability.
“We’ve been working to overview the corporate and have submitted many bids within the rail and photo voltaic sectors. These tasks depend on authorities awards.
“Sadly, there have been delays in our progress as a result of Covid-19 motion restrictions and a change in authorities, which hampered our plans to take the corporate ahead” he added.
In the meantime, on the Scomi degree, there have been board adjustments in March 2021 following the retirement of 4 administrators and the appointment of two new ones. That change additionally launched a hiccup within the plans to show across the firm inside a selected timeframe.
Whereas declining to reveal additional, he stated that the “complete bids made are fairly massive” and it’s assured of securing a letter of award for a rail mission and a letter of intent for a photo voltaic mission within the close to future.
The place debt is worried, he stated it was not overwhelming with a complete legal responsibility of round RM200mil owing to at least one financial institution.
On Monday, Scomi stated buying and selling in its shares might be suspended with impact from April 20, following Bursa Securities’ rejection of its request for an extra extension of time to submit its regularization plan.
It faces the chance of being delisted from the Foremost Market of Bursa Malaysia on April 22 except it recordsdata an enchantment in opposition to the delisting by April 18. Scomi fell into PN17 standing in Dec 2019, after its shareholders’ fairness unfold was lower than 25% of its issued share capital, and its fairness dropped under RM40mil primarily based on its monetary outcomes for the quarter ended June 30, 2019.
Whether or not there’s inconsistency within the guidelines as to why some corporations have been allowed extensions, a capital market specialist defined the overall rule is that an extension is given when there’s a “materials growth” in the direction of submission of a regularization plan.
“When there’s a materials growth, there are grounds to present an extension,” he stated, including that the onus is on the corporate to persuade the regulator on this.
He stated that the regulator will even take a look at the steadiness sheet of the corporate. If it has a whole lot of belongings or properties, an extension is probably going. In any other case it could be akin to privatising on a budget.
However within the case in Scomi, the “self-rescue” plan is totally different than what’s normally offered to Bursa Malaysia, and therefore its request for a direct submission.
Bursa Malaysia in a reply to StarBiz stated the trade “will deliberate any request for an extension of time, or additional extension of time (EOT) on a case by case foundation.”
“As a part of our consideration, we’ll bear in mind all the particular info and circumstances disclosed by the applicant, together with the justifications supporting the EOT utility in addition to any materials growth in the direction of the finalization and submission of the regularization plan,” it stated.
Scomi stated it intends to submit an enchantment in opposition to the delisting inside the enchantment timeframe.
“Nevertheless, Bursa shall proceed to droop the buying and selling of the corporate’s securities on April 20, although the choice on the corporate’s enchantment continues to be pending,” the corporate added in its inventory trade submitting.
For the second quarter (2Q) ended Dec 31, 2021, Scomi made a web lack of RM7.18mil, bringing losses for the primary half of economic yr 2022 to RM14.42mil.
Within the notes accompanying its 2Q outcomes, the corporate stated the pandemic had impacted the group’s prospects.
Nevertheless, it stated it was actively taking steps to restructure its steadiness sheet in addition to discover avenues to construct up its high line by specializing in segments it’s acquainted with similar to vitality administration options, together with renewal vitality in addition to rail upkeep and rehabilitation works .
Final month, subsidiary Scomi Power Providers Bhd disposed off its oilfield operations to Cahya Mata Sarawak Bhd for RM21mil.
Shares of Scomi plunged to 0.5 sen, down 80%, yesterday.