Friday 29 Mar 2024
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KUALA LUMPUR: Southern Acids (M) Bhd (SAB) yesterday furnished more details to Bursa Malaysia regarding the appointment of interim receivers and managers for the company on June 30 pursuant to a petition under Section 181 of the Companies Act, 1965 filed by two of its shareholders.

In yesterday’s announcement, SAB said the net book value of the company’s assets, which are under the interim receivers and managers (from accounting firm Ernst & Young), was RM368.3 million as at April 30, 2009.

SAB is an integrated player in oil palm plantation, palm oil milling and refinery, and the production of oleochemical products.

The company said the interim receivers and managers were currently reviewing the financial and operational aspects of the company, and shall advise the financial and operational impacts accordingly.

It is not known who the two shareholders of SAB are who filed the petition that led to the appointment of interim receivers and managers, though it was stated in the company’s announcement that one of them is also an executive director.

The reasons for the filing of the petition are also not known.

According to SAB’s FY2008 annual report, there were two executive directors in the company — Low Mong Chai and Lim Kim Long. Both were deemed to have control over 56.1% and 50.4% of SAB, respectively, through indirect interests.

SAB closed unchanged at RM1.40 yesterday, giving the company a market value of RM191.7 million. The stock was thinly traded with 11,700 shares transacted.

The company lost RM4.35 million for the financial year ended April 30, 2009, on a turnover of RM442.2 million. It posted a net profit and turnover of RM23.2 million and RM465.5 million, respectively, for FY2008.


This article appeared in The Edge Financial Daily, July 8, 2009.

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