KUALA LUMPUR (Oct 29): Tan Sri Vincent Tan Chee Yioun's private company Singer (M) Sdn Bhd has been identified as the white knight to regularise Practice Note 17 firm Berjaya Media Bhd (BMedia).
BMedia, which publishes The Sun newspaper in Malaysia, said in a statement to Bursa Malaysia today that it has been proposed that Singer will be injected into BMedia pursuant to the regularisation plan.
"Currently, Singer is in the midst of resolving a technical issue with the Companies Commission of Malaysia (SSM) on its audited financial statements and hence, required additional time to finalise the (regularisation) plan and sign the definitive agreements.
"In view that BMedia failed to obtain the extension of time from Bursa, BMedia will submit an appeal to Bursa to seek the extension of time to enable the company (BMedia) to finalise the plan. The major shareholder (Tan) and BMedia intend to continue its listing following the completion of BMedia’s plan," BMedia said.
According to BMedia, Singer sells consumer durable products and motorcycles on instalments via its nationwide distribution network of about 485 shops with 3,000 sales associates.
BMedia said Singer recorded an average annual pro forma profit after tax of RM37.6 million for the past three financial years ended Dec 31.
BMedia said Singer's net assets stood at RM525.7 million as at Dec 31, 2018.
"BMedia expects to resolve the technical issue with SSM, as well as completion of the required justification or due diligence review and valuations of the Singer business by the various professionals namely the principal adviser, independent adviser and independent valuer no later than March 31, 2020 to enable BMedia to thereafter enter into the definitive agreement," BMedia said.
At Bursa's afternoon break today, BMedia's share price settled down 11.5 sen or 56.1% at nine sen. The stock saw 688,400 shares traded.
BMedia's share price fell today in anticipation that the company's share trade will be suspended on Tuesday (Nov 5) and delisted on Thursday (Nov 7) following a Friday (Oct 25) statement on Bursa's website that BMedia failed to enter into a definitive agreement with a proposed white knight by Oct 20, 2019.
On Friday, the statement said: "BMedia has failed to (enter) into a definitive agreement with a proposed white knight by Oct 20, 2019 as stipulated in Bursa Malaysia's letter dated June 25, 2019 and the company's application for a further extension of time to enter into the definitive agreement and to submit its regularisation plan to the relevant authorities for approval had been rejected by Bursa."
"The securities of the company will be de-listed on Nov 7, 2019 unless an appeal against the de-listing is submitted to Bursa on or before Nov 4, 2019 (the Appeal Timeframe). Any appeal submitted after the Appeal Timeframe will not be considered by Bursa. In the event the company submits an appeal to Bursa within the Appeal Timeframe, the removal of the securities of the company from the official list of Bursa on Nov 7, 2019 shall be deferred pending the decision on the company’s appeal," the statement said.