KUALA LUMPUR (Oct 14): Permodalan Nasional Bhd's (PNB) attempt to block Bermaz Auto Bhd's proposed general mandate to issue new shares at the recent annual general meeting (AGM) has failed.

PNB, which holds a 4.11% stake in Bermaz, said it voted against the proposal because the auto assembly firm did not reveal details of its rationale for the exercise and the usage of the fund raised.

"Insufficient disclosure on the purpose and planned utilisation of proceeds from the proposed share issuance," said the asset management group on its website in regard to voting against the proposal in Bermaz's 12th AGM on Oct 6.

However, PNB's vote against granting Bermaz the authority to issue shares failed to sway the outcome of the proposed resolution as it was duly passed after 663 shareholders who collectively hold 627.8 million shares (representing 71.7% of voting shares) voted for it.

Meanwhile, 83 shareholders — including PNB — collectively holding 247.82 million shares (representing 28.3% of voting shares) voted against the proposal.

Employees Provident Fund is the largest shareholder of Bermaz, holding a 17.24% stake, followed by Dynamic Milestone Sdn Bhd (14.53%) and Amanahraya Trustees Bhd (7.21%).

In its notice of AGM dated Aug 29, Bermaz said the resolution was to allow the company to issue new shares not exceeding 10% of the total number of its issued shares.

"The general mandate (issuance of shares not exceeding 10% of total issued shares) will provide flexibility to the company for any possible fundraising activities, including but not limited to further placing of shares, for the purpose of funding future investment projects, working capital and acquisitions," it added.

According to Bermaz's 2022 annual report, PNB as of July 29 owned 47.82 million shares or a 4.11% stake in the company.

Bermaz's share price closed 0.53% or one sen higher at RM1.89 on Friday (Oct 14), giving it a market capitalisation of RM2.21 billion. Year-to-date, the counter has climbed 22%.