BURSA Malaysia’s decision to delist PN17 company Berjaya Media Bhd is seen as “surprising but that there may be reasons” for the decision.
LeInves PLT chief investment/research officer William Ng noted that the decision was surprising due to Covid-19 still being a major concern, and that the regulator should also be more understanding about this by allowing more time to the company.
“However, Bursa’s decision could also be due to a number of factors, such as the management being unable to give a good enough reason or submit an alternate plan that allows Bursa to feel comfortable with granting the extension of time,” said Ng to FocusM.
He also noted that this is a sad sign for other PN17 status companies.
Berjaya Media entered PN17 status on June 21, 2017, when the shareholders’ equity of Berjaya Media on a consolidated basis of less than RM40 mil represented 25% or less of its issued capital.
Following that, owner Vincent Tan’s private vehicle, Singer, came in as a white knight for Berjaya Media. However, the asset injection of Singer was delayed due to technical issues with the Companies Commission of Malaysia regarding its audited financial statements. This resulted in a delay to the regularisation plan.
This culminated in a request for an extension of time proposed by Berjaya Media, which saw Bursa rejecting the application on July 14, with the securities of Berjaya Media to be removed from the official list of Bursa Securities on July 17.
When trading of Berjaya Media’s shares were suspended on March 23, the share price was at 10.5 sen. – July 16, 2020
