KUALA LUMPUR (Aug 2): Bursa Securities has rejected GIIB Holdings Bhd’s proposed private placement, citing pending charges against several of its directors under the Malaysian Anti-Corruption Commission (MACC) Act 2009.

"Based on the representations made in the additional listing application (ALA) in relation to the proposed private placement as well as the various announcements made by GIIB, Bursa Securities took note that there are certain charges made against certain directors of GIIB pursuant to the MACC Act of which the matters are still pending the decision by the court," said GIIB in a filing on Wednesday (Aug 2).

“Given that corporate governance practices by the listed issuer and its directors is one of the key areas that Bursa Securities takes into consideration when processing the ALA, the MACC charges have given rise to concerns on the corporate governance practices. As such, Bursa Securities is unable to consider the ALA," the company added.

The rubber-related compounds manufacturer had in April proposed to undertake the private placement of up to 81.96 million new shares, or 10% of its issued share capital, to raise up to RM6.97 million for its working capital.

In May, MACC remanded GIIB chief executive officer (CEO) Tai Boon Wee, together with executive directors Tai Qiyao and Wong Ping Kiong, relating to an invoice for a sum of RM24,000 issued by GIIB’s 51%-owned subsidiary GIIB Healthcare Products Sdn Bhd over the sale of gloves.

Earlier this year, MACC had also charged both Boon Wee and Wong under Section 18 of the MACC Act for allegedly furnishing fake documents to auditor Grant Thornton Malaysia PLT.

Last month, Boon Wee relinquished his executive chairman post but is staying on as CEO. Datuk Seri Wan Adnan Wan Mamat replaced Boon Wee as non-executive chairman.

GIIB shares closed down half a sen or 5% on Wednesday, giving the group a market capitalisation of RM56.17 million.

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