KUALA LUMPUR (May 22): Trading in shares of jewellery manufacturer DeGem Bhd on the Main Market of Bursa Malaysia will be suspended from next Tuesday (June 9, 2020), ahead of the company's delisting.
Hence, the trading of DeGem shares will only be allowed up to 5pm on Friday, June 5, 2020. “DeGem Shares will no longer be traded on the Main Market of Bursa Securities, following its suspension on Tuesday, 9 June 2020,” according to a filing with Bursa Malaysia today.
“For the avoidance of doubt, the trading of DeGem Shares will continue to be suspended until the delisting of the company from the Official List of Bursa Securities, following the completion of the SCR (selective capital reduction and repayment exercise),” DeGem said.
Under the SCR, shareholders of DeGem whose names appear on the Record of Depositors of DeGem as at 5pm on Wednesday, June 10, shall be entitled to receive a cash consideration of RM1.10 for each DeGem share held, with the capital repayment to be made within 10 days.
On Sept 25, 2019, DeGem’s major shareholder Legion Master Sdn Bhd offered minorities RM1.10 a share to take the group private.
For the full year ended Dec 31, 2019 (FY19), DeGem posted a net profit of RM4.41 million versus a net loss of RM9,000 in FY18, despite a 15.4% decline in revenue to RM137.03 million from RM161.97 million.
The company attributed the higher earnings to improved performances across all business segments.
Its retail, design and distribution business recorded a higher profit after tax (PAT) of RM3.14 million versus RM1.29 million in FY18, due to lower operating costs from the closure of outlets, while its manufacturing segment's PAT grew to RM2.31 million from RM1.01 million, on improved gross profit margin and cost rationalisation activities.
DeGem shares closed unchanged at RM1.08 today, valuing the company at RM144.72 million.