This article first appeared in The Edge Financial Daily on October 30, 2019

KUALA LUMPUR: Tycoon Tan Sri Vincent Tan Chee Yioun’s (pic) 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 yesterday that it has been proposed that Singer be injected into BMedia pursuant to the regularisation plan.

“Currently, Singer is resolving a technical issue with the Companies Commission of Malaysia (SSM) on its audited financial statements, hence it requires 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 seeking 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. 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 the completion of the required justification or due diligence review and valuations of the Singer business by professionals — 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.

BMedia shares ended 12 sen or 58.54% lower at 8.5 sen yesterday, on anticipation that the company’s share trade will be suspended on Nov 5 and delisted on Nov 7 following an announcement last Friday that BMedia had failed to enter into a definitive agreement with a proposed white knight by the regulator-stipulated Oct 20 deadline.

Last Friday’s announcement also said 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 was 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 time frame]. Any appeal submitted after the appeal time frame will not be considered by Bursa. In the event the company submits an appeal to Bursa within the appeal time frame, the removal of the securities of the company from Bursa’s official list on Nov 7, 2019 shall be deferred pending the decision on the company’s appeal,” the announcement read.