THE Minority Shareholders Watch Group (MSWG) is seeking feedback MYNews Holdings Bhd at its forthcoming annual general meeting (AGM) with regard to its expansion strategy amid the ongoing COVID-19 health crisis.
MSWG has expressed concern that MYNews had 46 stores closed down in FY2020 compared to 17 stores in FY2019.
“What are the reasons for closing so many stores?” asked the shareholder activism group.
MYNews will hold its virtual AGM on March 25 (Thursday) at 10am from its headquarters in Kota Damansara, Selangor.
MYNews has emphasised in its Annual Report 2020 that the prospect of the group hinges on the roll-out of higher store count, increasing the number of its Maru Kafe concept outlets and effective utilisation of its food processing centre (FPC).
In a related development, MSWG also queried MYNews on the utilisation rate of its FPC which has been non-performing and contributed a loss of RM12.4 mil to the group in FY2020.
“When does the company expect to turnaround FPC to achieve a breakeven point for capacity utilisation?” asked the shareholder activism group.
Elsewhere, MSWG also probed CAB Cakaran Corporation Bhd, an integrated poultry farming and food processing player, on efforts undertaken to recover the group’s allowance for impairment losses on trade receivables which rose to RM21.29 mil in FY2020 (2019: RM19.58 mil).
“What is the probability of recovering the impaired amount?” asked the shareholder activism group. “To-date, how much of the impaired trade receivables have been recovered?”
Cab Cakaran will be convening its AGM on March 25 (Thursday) at 10.30am at its headquarters in Seberang Jaya Industrial Park, Penang.
Also of interest to MSWG, is flour miller Lotus KFM Bhd’s (LKFM) three share sale agreements to acquire the entire equity interest in three companies whose principal activities are logging and trading in timber logs for RM3.7 mil cash.
“What are the company’s plan for this land?” asked the shareholder activism group.
The proposed acquisition would give LKFM the rights to over 1,744.5 acres of plantation land in Kelantan.
The company will stage its AGM on March 22 at 11am at the Palm Garden Golf Club in Putrajaya. – March 19, 2021
