Premier Nalfin Bhd remains hopeful that the company which has been without core operations since 2011 will be able to come into some kind of business by mid-May, failing which it will have to be delisted from Bursa Malaysia.
Its chief executive officer Kili Anandaraj K R Somasundram says the company which sold its entire original business related to downstream palm oil operations has been “working on getting a new business” since becoming a cash shell firm after the sale, and slipping into the Practice Note 16 (PN16) category under Bursa Malaysia’s listing requirements - back in 2011.
PN 16 is also known as the cash company category and is used to describe firms with cash but no core business.
Kili says Premier Nalfin, which is 63% controlled by Koperasi Kebangsaan Permodalan Tanah Bhd has been given until mid-May by Bursa Malaysia to come up with a regularisation plan which includes identifying a viable core business.
The company is now in a net cash position of RM116mil, which works out to about 34 sen per share.
Kili says the money will be distributed back to shareholders if there is no deal by mid-May.
“We don’t have much time as it is, looks like if nothing comes (through) by next week, we will probably delist and return the money to shareholders.
“The cash is all intact,” he tells StarBizWeek.
Still, Kili insists that he is “hopeful” that something can be concluded.
“We have one party that we are talking to right now , hopefully we will be able to conclude something.
“After having waited for so long, we would like to give the shareholders some kind of premium,” he adds.
He doesn’t specify the business that is being negotiated but says it has to be “acceptable” to the regulatory authorities namely Bursa and the Securities Commission.
He does however divulge that the business that is being discussed isn’t synergistic with the company’s previous business. “ It can be any business actually,...as long as it is feasible and follows the guidelines....”
Kili also says before this, the company had spoken to “so many companies” but some did not meet the necessary regulatory requirements while others had projects that were “not exciting.”
Shares in Premier Nalfin meanwhile have been suspended since April 11 and last traded at 27.5 sen apiece.
Indeed, observers have remarked that six years is a long period for shareholders to wait on a company that is not generating any business but at the same time has cash.
Granted, while minority shareholders holding very small stakes in Premier Nalfin had the option of selling their interests into the market and walking away before the stock was suspended, those holding sizeable stakes would have found it difficult to divest their positions because the stock is fairly illiquid.
To be sure, the market price of Premier Nalfin did reflect the cash value in the company for some time, that is 34 sen per share, prior to the suspension of the trading in the stock.
Still, as it stands, Premier Nalfin is likely to go down in the history books of Bursa Malaysia as one of the companies that has remained listed but without a core business - for the longest of times.
Recall, how the company came into this.
Emrail Sdn Bhd, a private firm which owns 70% of the Kinrara Damansara Expressway (Kidex) was supposed to be injected into Premier Nalfin for RM669.87mil, a move that was meant to give the company a new business after it sold off its original operations.
This proposal came about in June 2014 and was subjected to conditions that included Kidex getting all the relevant approvals for its implementation.
However, there were hiccups in the implementation of Kidex following some opposition from the Selangor state government.
Back then, Premier Nalfin had asked for a nine-month extension to smoothen things out and complete the deal.
But the deal fell through.
Kili claims this was “beyond our control” and the deal was mutually terminated.
Now, it remains to be seen if shareholders who have stuck by Premier Nalfin all this while will get back about 34 sen per share or will they be able to ride along on a new business injected into the company.
By mid-May, there should be some answers for all of these patient shareholders.
Meanwhile, at a shareholders’ meeting yesterday, resolutions which included the re-election of two directors, the approval of payment of directors’ fees and the re-appointment of company auditors were passed without any issues.