Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on January 16, 2018

KUALA LUMPUR: Amtek Holdings Bhd, which has sold off its core business, has fallen into Practice Note 17 (PN17) status, after its shareholders’ equity on a consolidated basis fell to below RM40 million and not more than 25% of its issued and paid-up capital, based on its latest unaudited financial statements for the financial period ended Nov 30, 2017, it said.

Under the regulations, shareholders’ equity of a listed entity must be above 25% of the issued and paid-up capital of the issuer, and equal to RM40 million or more.

As at Nov 30, its share capital stood at RM69.13 million, while total shareholders’ equity was at RM13.07 million.

It has also become an affected listed issuer under Chapter 8, Paragraph 8.03A(2)(a) of Bursa Malaysia’s Main Market Listing Requirements, after it sold off its major business by terminating licence agreements with Crocodile International Sdn Bhd and ceased the distribution and retail sale of men’s apparel and small leather goods businesses in Malaysia.

Last Thursday, Amtek announced its indirect wholly-owned subsidiary, Apparel International Sdn Bhd, had inked a conditional sale and purchase agreement to sell off its entire inventory, accessories and retail and fixed assets under the Crocodile brand.

The company said yesterday it is required to regularise its condition within 12 months of the announcement, and announce within three months from yesterday, on whether its regularisation plan will result in a significant change in its business direction or policy.

If it fails to do so, it will be suspended from trading six days after a notice is issued by Bursa, and delisting procedures would be taken against the company.

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