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Ailing steelmaker Perwaja to delist on May 4 – The Edge Markets MY

This article first appeared in The Edge Financial Daily, on April 21, 2017.

Ailing steelmaker Perwaja to delist on May 4

KUALA LUMPUR: After being on the Main Market of Bursa Malaysia for close to nine years, loss-making steel manufacturer Perwaja Holdings Bhd will be delisted on May 4.

Perwaja, which fell into Practice Note 17 status in November 2013, said it failed to submit its regularisation plan within the stipulated time frame and subsequently had its application for time extension for submission rejected by Bursa.

However, if it files an appeal by April 28, the delisting will be deferred pending the decision on the appeal, added Perwaja in a filing with the stock exchange yesterday.

The group said that upon its delisting, it will continue to exist but as an unlisted entity.

“The company is still able to continue its operations and business and proceed with its corporate restructuring and its shareholders can still be rewarded by the company’s performance,” it said.

However, the shareholders will be holding shares which are no longer quoted and traded on Bursa, it added.

For the second financal quarter ended Dec 31, 2016 (2QFY17), Perwaja’s net loss narrowed by 61.9% to RM62.91 million from RM164.96 million a year earlier. Revenue fell 56.2% to RM71,000 from RM162,000.

The quarterly report showed that the group’s short-term borrowings amounted to RM1.12 billion, while long-term borrowings came up to RM276.34 million, bringing its total borrowings to RM1.4 billion.

Perwaja’s share price closed unchanged yesterday at 5.5 sen, valuing the group at RM31.92 million.

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