Berjaya Media tumbles after Bursa rejects extension plan


  • Corporate News
  • Tuesday, 29 Oct 2019

Berjaya Media had identified the white knight which is Singer (Malaysia) Sdn Bhd , a private company owned by BMedia’s major shareholder, Tan Sri Vincent Tan Chee Yioun to be injected into BMedia pursuant to its regularisation plan.

KUALA LUMPUR: Berjaya Media Bhd's share price tumbled to a low of 11.5 sen at midday on Tuesday as it faces suspension after Bursa Malaysia Securities rejected its application for further extension to submit its revamp plan.

At midday, it was down 11.5 sen to nine sen with 688,400 shares done.

The KLCI was up 2.79 points or 0.18% to 1,572.79. Turnover was 1.26 billion shares valued at RM753.62mil. There were 330 gainers, 352 losers and 405 counters unchanged.

BMedia said Bursa Securities had last Friday rejected the request for more time to submit a regularisation plan to the regulatory authorities.

Bursa Securities had notified BMedia on the suspension and de-listing of the securities of BMedia due to its failure to enter into a definitive agreement with a white knight by Oct 20.

Trading would be suspended from Nov 5 and delisted on Nov 7 unless an appeal against the de-listing was submitted to Bursa Securities on or before Nov 4.

If the company submits an appeal to Bursa Securities within the appeal timeframe, the removal of the securities of the company shall be deferred pending the decision on the company’s appeal.

“BMedia wishes to inform that it has already identified the white knight which is Singer (Malaysia) Sdn Bhd, a private company owned by BMedia’s major shareholder, Tan Sri Vincent Tan Chee Yioun to be injected into BMedia pursuant to its regularisation plan.

“Currently, Singer is in the midst of resolving a technical issue with Suruhanjaya Syarikat Malaysia (SSM) on its audited financial statements and hence, required additional time to finalise the plan and sign the definitive agreements.

“In view that BMedia failed to obtain the extension of time from Bursa Securities, BMedia will submit an appeal to Bursa Securities to seek for the extension of time to enable the company to finalise the plan.

“The major shareholder and BMedia intend to continue its listing following the completion of BMedia’s plan, ” it said.

The Singer Group is involved in the business of selling and marketing of consumer durable products and motorcycles on installment option schemes via its nationwide distribution network of about 485 shops with 3,000 sales associates.

The Singer Group recorded an average annual proforma profit after tax of RM37.6mil for the past three financial years ended Dec 31,2018 and net assets/shareholder’s fund of RM525.7mil as at Dec 31,2018.

“BMedia expects to resolve the technical issue with SSM as well as completion of the required justification or due diligence review and valuations of the Singer business by the various professionals namely the principal adviser, independent adviser and independent valuer no later than March 31,2020 to enable BMedia to thereafter enter into the definitive agreement, ” it said.

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