CEO Morning Brief

Maxim Declines to Reveal Value of Sewerage Plant Job in Cheras, Citing Confidentiality Clause

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Publish date: Fri, 01 Dec 2023, 08:51 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (Nov 30): Maxim Global Bhd was queried by Bursa Malaysia on the scant details regarding its “privatisation agreement” to decommission and upgrade several sewerage treatment plants in Cheras.

One of Bursa's six queries revolved around the value of the land that would be transferred to the developer upon completion of the decommissioning and upgrading works, including provision of amenities and utilities done by Maxim's subsidiary.

However, Maxim said in its reply to Bursa that details of the land swap and capital for the project are confidential under the privatisation agreement, pending government approval.

“In view of the confidentiality clause in the privatisation agreement, approval of the government is required before the provision of the salient terms and conditions,” said Maxim.

To recap, Maxim on Tuesday announced that its 70%-owned indirect subsidiary F3 Cheras Development Sdn Bhd (F3C) has entered into a privatisation agreement with the Ministry of Natural Resources, Environment and Climate Change and government-owned Syarikat Tanah Dan Harta Sdn Bhd for the project.

Upon completion of the decommissioning and upgrading, including provision of the necessary amenities and utilities, according to Maxim, Syarikat Tanah Dan Harta will transfer part of the land held under lot 7145, Mukim Cheras, Daerah Wilayah Persekutuan (Asset No. KLR 134) to F3C.

Maxim, however, did not reveal the value of the parcel of land that would be transferred in its Bursa filing.

The developer told the exchange that construction works of the project are expected to start nine months from the privatisation date (Nov 27), while F3C shall complete the construction works within 36 months.

Meanwhile, Maxim said that the project will be funded wholly by the group’s internally generated funds.

It also assured that the project would not have any material effect on the group’s consolidated earnings, earnings per share, net assets, gearing, share capital, substantial shareholders or their shareholdings in the company.

The privatisation agreement is not subject to the approval of the group’s shareholders as the agreement is below the 25% ratio based on its latest audited financial statement of FYE2022 in accordance with Bursa Securities' Main Market Listing Requirements.

It noted that none of the group's directors or major shareholders are connected to the privatisation deal, except its deputy chairman Datuk Seri Anuar Adam, who through his son, Almiran Anuar, has a 21% indirect interest in F3C.

Maxim shares closed half a sen or 1.23% lower to 40 sen on Thursday, valuing the group at RM290.52 million.

Source: TheEdge - 1 Dec 2023

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