KUALA LUMPUR: Kuantan Flour Mills Bhd (KFM), which recently gained and lost a potential investor/rescuer (state-owned Felcra Bhd) within a week, has been spared from a de-listing for now.
The Practice Note 17 company, whose proposal to regularise its financial position is now due, said Bursa Malaysia Securities postponed the share trading suspension and de-listing pending the decision on KFM’s appeal for more time to submit a regularisation plan.
KFM had two weeks ago requested for a six-month extension to turn in the plan. This was a few days after the company received a letter of interest from Felcra to explore, among others, the possibility of a reverse takeover.
“The suspension on the trading of the company’s securities and de-listing of the company in accordance with Paragraph 8.04(5) of the Main Market Listing Requirements shall be deferred pending the decision on the application,” said KFM.
Following Felcra’s retraction of interest, KFM has found another potential partner that may be able to help it to restructure its debts.
As announced on Tuesday, KFM has signed a memorandum of understanding to collaborate with coal and starch trader Lotus Essential Sdn Bhd in carrying out flour milling activities and trading of flour and food related products.
On Wednesday the market reacted by doubling KFM’s share price to 18 sen at the close of trading (57.29 million shares changed hands during the day), which recalls the optimistic reaction after the company made the announcement on Felcra’s letter of interest earlier this month.
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