When a company is taken off Bursa Malaysia because it has an inadequate level of business to justify its listing, the affected parties are the minority shareholders. They are forced into a position of disadvantage because an unlisted entity does not come under the oversight of a body such as Bursa or the Securities Commission Malaysia (SC).
For example, the minorities of Nylex (Malaysia) Bhd and Awanbiru Technology Bhd (Awantec) saw 50% of the paper wealth of their investments in these companies wiped out last week. This was after Bursa rejected the appeals of the companies for an extension of time to submit a regularisation plan to get a core business.
Awantec has been without a core business to sustain its operations since December 2020 after Microsoft terminated its membership of the partner network. This was a second setback for Awantec, previously known as Prestariang Bhd.
In December 2019, the Pakatan Harapan government terminated the company’s 15-year concession to design and maintain a new immigration border system. Awantec is seeking compensation of up to RM922 million for the termination. The suit is still pending.
Also, Awantec, through its subsidiary Prestariang Sdn Bhd, is one of the three companies with the mandate to manage the migration of government data to the cloud.
As for Nylex, it has been without a core business since January last year after it disposed of its assets and liabilities to Ancom Bhd in a merger exercise. Nylex is an empty shell without any core business at the moment.
Nevertheless, it is supposed to be the vehicle for a proposed light rail transit (LRT) system to be built in Johor.
Neither Awantec nor Nylex is financially distressed. The issue at hand is that the companies do not have an adequate level of business to continue as listed entities.
In this respect, the boards have the fiduciary duty to cast their net wide to help the companies get a core business to fulfil Bursa’s requirement. If they are unable to get a core business, the losers will be the minorities. And the boards should be brought to task.
The regulators should protect the minorities. But by delisting the companies, they are doing just the reverse.
Oct 27 legal suit cum Arbitration with Government of Malaysia for RM922 million..plus KLSE approval for waiver of RP like Catcha coming…Awan wil be like a cloud in the sky../
OTHERS AWANBIRU TECHNOLOGY BERHAD ("AWANTEC" OR "THE COMPANY") - PROPOSED RENEWAL OF AUTHORITY FOR THE COMPANY TO PURCHASE ITS OWN SHARES OF UP TO 10% OF THE TOTAL NUMBER OF ISSUED SHARES OF THE COMPANY ("PROPOSED RENEWAL OF SHARE BUY-BACK AUTHORITY")
From Annual report. Notes on financial statements. Section 8 page 209 "(b) Included in the trade receivables of the Group is an amount of RM182,798,000 (2022 - RM182,798,000) owing by the Government of Malaysia (“GOM”) in relation to the development of SKIN Solution. As disclosed in Note 43 to the financial statements, the termination of the SKIN Project took effect on 22 January 2019. The amount owing is expected to be recovered through legal claims from the GOM."
From AR page 8/255 The OS was heard before the High Court on 22 January 2021, 29 January 2021, 26 February 2021, 9 April 2021, 20 May 2021, 2 November 2021, 30 November 2021, 11 March 2022, 25 July 2023, 26 July 2023 and 27 October 2023. The hearing of the OS is currently still ongoing.
Hope Govt do not try and wriggle their way out of the Trade Receivables of RM182,798 billed by saying corruption or defective ,etc in the billings..settle amicably..what is the reason for termination of SKIN ?
(ii) after concluding the examination of the expert witness, the Court has directed the Parties to file Notes of Proceedings, Written Closing Submissions and Written Reply Closing Submissions respectively before the Oral Closing Submission; and
(iii) the Oral Closing Submission has been fixed on 8 March 2024 by the Court for the conclusion of the OS.
The Company will make the necessary announcements on material developments in respect of this matter from time to time.
This announcement is dated 30 October 2023.
They got to be kidding. Can't even make a simple decision. It's a JOKE!
KUALA LUMPUR (Nov 7): Edaran Bhd’s share price hit an 18-month high of 71 sen in Tuesday morning trade, after its unit Edaran IT Services Sdn Bhd won a contract to maintain the Royal Malaysian Customs Department’s operating system and MySST (Malaysia Sales & Services Tax) application worth RM89.88 million — which is almost three times the company’s market capitalisation based on its Monday (Nov 6)’s closing price.
Before KLSE issue delisting warning on around August 17, Awantec was at 40cts….and should be 40cts now as extension of RP approved and delisting delayed until April 2024…..
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EVO118
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Posted by EVO118 > 2023-09-12 16:44 | Report Abuse
For news, come back on the 27 Oct.