KUALA LUMPUR: Shares in garment retailer Padini Holdings Bhd
pared nearly 10% to an intra-morning low of RM1.40 on Monday following last Friday's report that some of its bank accounts had been frozen by the Malaysian Anti-Corruption Commission (MACC) in an ongoing money-laundering investigation.
As at 9.39am, the share was trading at RM1.48, 4.52% lower than Friday's closing price of RM1.55 after 8.21 million shares changed hands.
Over the weekend, Padini said it had commenced an internal review to assess the circumstances surrounding the MACC action on the bank accounts, which belong to the company and its subsidiaries.
It said the order was issued by the MACC in connection with an ongoing investigation involving certain external counterparties to the group, who are not employees, officers, or part of the group’s management.
"The company wishes to emphasise that, based on information currently available, we are not aware of any allegation or wrongdoing on our part and understand that the freezing order is a procedure taken in the course of the investigation."
It added that the company has engaged external legal counsel to advise on the matter has taken steps, which include seeking appropriate relief in respect of the unfreezing of the affected accounts.
Padini also said that the group’s day-to-day operations remain fully functional and uninterrupted, with business continuing as usual and will provide further updates as and when there are any material developments.
It said the company will continue to be fully cooperative with the relevant authorities and remains committed to ensuring transparency throughout this process.
