Friday 29 Mar 2024
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This article first appeared in The Edge Malaysia Weekly on December 23, 2019 - December 29, 2019

Last Friday, financially distressed Brahim’s Holdings Bhd announced that it had found a white knight in MRI VC Bhd to help it exit its Practice Note 17 (PN17) status by the third quarter of 2020.

The filing with Bursa Malaysia described MRI as a company involved in the production of prepared meals and dishes and event/food catering. It is owned by brothers Norizam Tukiman (49% stake) and Nor Halim Tukiman (51%).

Brahim’s said it had signed a heads of agreement with MRI under which the latter will emerge as a substantial shareholder of Brahim’s following its participation in a proposed fundraising that will entail a private placement and a rights issue. However, no details were provided on how much money Brahim’s is looking to raise in the exercise or the percentage of equity interest MRI is going to take up.

Brahim’s also failed to explain how the entry of MRI can revive its financial health. According to the filing, Brahim’s will award MRI monthly contract(s) worth up to RM500,000 each for two years. If that is so, the move is more likely to prop up MRI’s finances instead of the other way round.

And if one sought further clarity on the regularisation plan at the hour-long press briefing by Brahim’s on the same day, that was not to be.

Brahim’s executive chairman Datuk Seri Ibrahim Ahmad declined to reveal the size of MRI’s potential holding in the company except to say that it will be substantial and that he will remain the controlling shareholder.

Norizam, who is executive chairman of MRI, said the joint force of the two companies’ core competences can help Brahim’s become profitable within five years. How, pray tell?

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