Sarawak Cable fell under the PN17 classification in 2022 after its external auditor raised doubts on its viability as a going concern. (Sarawak Cable pic)
PETALING JAYA: Sarawak Cable Bhd shares tumbled as much as 26% today after the Practice Note 17 (PN17) cable manufacturer failed to hammer out a rescue package with a UK-based white knight.
The stock fell four sen or 26% to 11.5 sen, its lowest in five months, shortly after the start of trading. It however managed to claw back its losses, closing half-a-sen or 3.2% higher at 16 sen, valuing it at RM63.8 million.
It was the 17th most traded stock on Bursa Malaysia, with a total of 38.5 million shares changing hands.
It has been a topsy-turvy ride for the Sarawak-based group since last December, with huge swings in its share price.
In early December, it was trading as low as 4.5 sen before surging 788% to a high of 40 sen in late December after the group announced it had found a white knight in Serendib Capital Ltd, which would undertake a “resuscitation exercise” to revive the company. Details of the exercise were not disclosed.
Sarawak Cable said then that Serendib Capital had prepared a “war chest of RM250 million” to help pare down its debts and recapitalise the company to meet growing customer demand.
The company fell under the PN17 classification in September 2022 after its external auditor raised doubts on its viability as a going concern, after some financial institutions suspended its credit facilities.
The company’s deadline to submit its regularisation plan has been extended several times with Sept 30 being its latest deadline.
Mahmud Abu Bekir Taib.
In a bourse filing yesterday, the group said the memorandum of agreement signed with Serendib Capital on Dec 29 had fallen through as both parties were unable to agree on an “exclusive working relationship”.
Sarawak Cable’s largest shareholder is its chairman, Mahmud Abu Bekir Taib, the son of former Sarawak chief minister and governor Abdul Taib Mahmud, with an 18.6% stake. State-owned power company Sarawak Energy holds a 13.13% stake in the company.
For the third quarter ended Feb 29, 2024, its net loss widened to RM21.04 million from RM14.16 million a year earlier, while revenue fell 43% to RM74.43 million from RM130.55 million.
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