KUALA LUMPUR (Jan 14): Scomi Group Bhd’s share price came under pressure today after its 65%-owned subsidiary Scomi Energy Services Bhd revealed it is investigating a RM64.33 million loan lent to the former.
At 4:12pm today, Scomi Group’s share price was trading 0.5 sen or 7.69% lower at six sen, with 1.57 million shares exchanging hands, giving it a market capitalisation of RM57.61 million.
On Friday (Jan 11), Scomi Energy told the stock exchange its board has commenced the said investigation, as the advances were made without board approval.
The advances without board approval have dragged SESB into deeper financial trouble as Scomi Group has not been able to repay the outstanding amount.
Scomi Energy’s board said it is currently reviewing the management structure and terminating the shared services arrangement between itself and the parent company, except for certain critical functions.