KUALA LUMPUR (April 13): Sarawak Cable Bhd (SCable) and KAB Energy Holdings Sdn Bhd (KEH), a wholly-owned subsidiary of Kejuruteraan Asastera Bhd (KAB), have mutually agreed to extend the conditional period for the proposed disposal of 300,000 shares in PT Inpola Mitra Elektrindo (PT IME), which owns and operates a mini hydroelectric power plant in North Sumatera, Indonesia, for another three months to July 31.

In July last year, SCable and all other shareholders of PT IME had signed a conditional share purchase agreement with KEH for the proposed disposal, which will be satisfied via RM10,000 cash and the settlement of debts, liabilities and shareholders’ advances of PT IME capped at RM74.99 million.

The proposed disposal entails the disposal of SCable’s entire 78.3% equity interest in PT IME of 235,000 shares, together with 65,000 shares representing 21.7% equity interest held by Tiopan Hasudungan Marpaung, Parulian Marpaung and Subari Rudi to KEH for RM10,000. Premised on this, the portion of the cash component attributable to SCable is RM7,833.

In a bourse filing on Thursday (April 13), SCable said it and KEH had on Wednesday mutually agreed to extend the conditional period for another three months.

Previously, loss-making SCable announced that the proposed disposal forms part of the group’s efforts to repay its lenders. The proposed disposal is expected to raise gross proceeds of up to RM44.2 million, comprising the cash component attributable to SCable, the shareholders’ advances to be received and the earned out profit if the target production of the mini hydro is achieved.

The proposed disposal was supposed to be completed by the first quarter of 2023.

SCable slipped into Practice Note 17 status on Sept 30, 2022 after its external auditor expressed disclaimer on its audited financial statements for the 17-month period ended May 31, 2022.

SCable shares closed unchanged at 8.5 sen on Thursday, valuing the company at RM33.91 million. KAB’s share price also ended the day unchanged at 32.5 sen, giving it a market capitalisation of RM578.69 million.