Multi Sports' white knight seeks its listing status
KUALA LUMPUR (May 21): PN17-status Multi Sports Holdings Ltd has entered into a Memorandum of Understanding (MoU) with construction firm Southern Score Sdn Bhd (SSSB) today which will entail the transferance of its listing status to a new entity to be set up by both parties, the company announced to Bursa Malaysia.
The MoU is part of a proposed restructuring plan by Multi Sports to regularise its financial position, which SSSB has shown interest to take part in.
Under the deal, Multi Sports will establish a new company (Newco) with SSSB that will take over the listing status of the company; undergo a capital restructuring if necessary; capitalise the accrued liabilities and debts owed by Multi Sports to its creditors; and the Newco will acquire the entire issued share capital of SSSB at a proposed price to be determined later through valuation, which will be satisfied through the issuance of Newco shares.
Shareholders of Multi Sports will become shareholders in the Newco, it said.
In consideration of the proposed restructuring, SSSB plans to issue up to RM15 million worth of Newco shares in the following manner:
i) Up to RM9 million worth of Newco shares to existing shareholders of Multi Sports which will be distributed according to the size of the stakes held by its shareholders at an entitlement date to be determined later; and
ii) Up to RM6 million worth of Newco shares as full and final settlement of the accrued debts and liabilities owed to creditors.
Both Multi Sports and SSSB plan to enter into a definitive agreement to implement the restructuring scheme no later than 30 days from the date of the MoU, unless an extension is mutually agreed upon.
The definitive agreement is contingent upon receiving the approval of Bursa Securities for an extension of time pursuant to Practice Note 17/2005 for the submission of the regularisation plan by the company, and the approval in principle from its creditors.
“In the event that any of the Approvals is rejected or shall not have been given or obtained by the Cut-Off Date (or such extended time period as the parties may mutually agree), this MOU shall forthwith lapse and be of no further effect and neither party shall have any claim of whatsoever nature against the other party under this MOU,” it said.
MSPORTS - SUSPENSION OF TRADING We refer to MSPORTS' announcement dated 22 October 2019 where the Company announced that it is unable to submit its Anual Report including its Annual Audited Accont for financial year ended 30 June 2019 (“AR 2019") to Bursa Malaysia Securities Berhad ("Bursa Securities") for public release within the stipulated time frame i.e. 31 October 2019 pursuant to Paragraph 9.23(1) of Bursa Securities' Main Market Listing Requirements ("LR").
Pursuant to Paragraph 9.28(5) of the LR, if a listed issuer fails to issue the outstanding financial statements within 5 market days after the expiry of the relevant timeframes stated in Paragraph 9.22 and 9.23 of the LR ("Relevant Timeframes") (the last day of the 5 market days is referred to as "Suspension Deadline"), in addition to any enforcement action that Bursa Securities may take, Bursa Securities shall suspend the trading in the securities of such listed issuer. The suspension shall be effected on the next market day after the Suspension Deadline.
In view of the above, the trading in the above Company's share will be suspended with effect from 9.00 am, Friday, 8 November 2019 until further notice.
Pursuant to Paragraph 9.28(6) of the LR, if a listed issuer fails to issue the outstanding financial statements within 6 months from the expiry of the relevant time frames, in addition to any enforcement action that Bursa Securities may take; de-listing procedures shall be commenced against such listed issuer.
10.04.2018 The Company informs Bursa that it is still unable to finalise its Annual Report 2016 and is awaiting reports on the litigation involving subsidiaries in China and checks on the status of Jinjiang Baixing’s factory facility at Xinbin Farm
According to the available but incomplete data, Jinjiang Baixing Shoe Materials Co., Ltd. was reported to be involved in 24 lawsuits from 2014 till April 2018. The financial amounts involved in the lawsuits were approximately RMB 518.13 million yuan (excluding the objects/value of subject matter of litigation where not stated).
Litigation in 2015: There were 5 cases reported to have been taken in 2015. The total amount in the objects of litigation was above RMB 31.002 million yuan (excluding the objects of litigation of unknown cases)
We are informed that the debts in the cases above that have not been settled have been handed over to the court of China for enforcement procedures but have been unable to get further information or confirmation of specific details except inrelation to the China Construction Bank matter as set out in the note to the Table, where mortage property was put up for auction.
Checks on the properties carried out by our auditors for the 2016 Annual Report confirmed that the factory and land is currently being used by a third party, Quan Zhou City Huayang Shoes Material Technology Co. Ltd
Based on the available information, the Board understands that Lin Liying and Lin Houzhi are defendants in cases brought by banks / financing houses as they were party to loan agreements or guarantors for financing.In the Board’s opinion there is insufficient information on the individual legal cases and underlying contracts for the Board to form an opinion on the potential options for civil action to challenge judgments or otherwise recover damages at this stage and the decision to pursue and fund litigation in China will need to be put before shareholders.
This kind of company allow I here ?Maxwell cap .xingquan msport. Why all beginning is super cash rich and nta high ? Why auditors so careless allow listed in Bursa ? For me I feel if you wrong on one company we forgive maybe careless. Cap MSP xingquan . Maxwell .how many mistake already. Never compensated any to people. Like that also can . Why at beginning can all account cash rich ? Who is the back hand push this red chip listed on Bursa ? Who is the benefit?
Date of change 03 Nov 2019 Name DATO' MOHAMED FEISAL BIN IBRAHIM Age 69 Gender Male Nationality Malaysia Designation Independent Director Directorate Independent and Non Executive Type of change Appointment Qualifications No Qualifications Major/Field of Study Institute/University Additional Information 1 Degree Bachelor of Economic (Hons) University Malaya
Working experience and occupation Officer in the Administrative and Diplomatic Service of the Malaysian Federal Government (1974-1990) Executive Chairman, Bina Puri Holdings Bhd (1999-2010) Board Director, IJM Corporation Bhd (1992-1995) Executive Director, Sriwani Berhad (1992-1994) Chairman, Aliran Ihsan Resources Bhd (2007-2010) Chairman, Latar Highway Sdn Bhd (2005-2010) Board member Suria Bistari Development Sdn Bhd (2008-current) Executive Chairman, Perkasa Sutera Sdn Bhd (1990-current) Directorships in public companies and listed issuers (if any) Multi Sports Holdings Ltd Family relationship with any director and/or major shareholder of the listed issuer None Any conflict of interests that he/she has with the listed issuer None Details of any interest in the securities of the listed issuer or its subsidiaries None
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....