KUALA LUMPUR: Concrete Engineering Products
Bhd (Cepco) has entered into an agreement to settle RM16.8mil of outstanding debt through the transfer of quoted shares in Inch Kenneth Kajang Rubber Public Ltd Co (IKKR).
In a filing with Bursa Malaysia, Cepco said it will transfer 48 million IKKR shares, representing a 12.68% stake, to creditor Datuk Muhamad Fasri Samsudin and/or his nominees under the proposed settlement.
The shares are valued at 35 sen each, translating to a total disposal value of RM16.8mil, based on a five-day volume-weighted average market price of 35.6 sen.
The group’s total outstanding debt stood at RM19.37mil as at Feb 28, 2026.
Following the settlement, Cepco is expected to record a loss of RM3.36mil based on the carrying value of the shares.
The company said the exercise allows it to settle liabilities without utilising cash resources, thereby reducing gearing and interest costs.
“Upon completion of the transfer, the company will have a remaining 3.088 million shares in IKKR,” Cepco said, adding that the proposed settlement allows the company to settle its outstanding liabilities with the creditor without utilising cash resources.
The proposed settlement is expected to reduce total liabilities by RM16.8mil but will lower net assets by RM0.045 per share and weigh on earnings for the financial year ending Aug 31, 2026.
Barring unforeseen circumstances, the settlement is expected to be completed by end-March 2026.
