KUALA LUMPUR (March 31): Nationwide Express Holdings Bhd will be delisted on April 5 following Bursa Malaysia’s rejection of the group’s appeal for an extension of time to submit its regulation plan to the relevant authorities.

In a filing, the bourse said the securities of the group which are currently deposited with Bursa Malaysia Depository Sdn Bhd may remain deposited, notwithstanding the delisting of the securities.

“Alternatively, shareholders of the company who intend to hold their securities in the form of physical certificates can withdraw these securities from their Central Depository System (CDS) accounts maintained with Bursa Depository at any time after the securities of the company have been delisted from the official list of Bursa Securities.

“This can be effected by the shareholders submitting an application form for withdrawal in accordance with the procedures prescribed by Bursa Depository,” said the exchange.

It added that Nationwide will continue to exist upon delisting, but as an unlisted entity.

The company is still able to continue its operations and proceed with its corporate restructuring, and its shareholders can still be rewarded by the company’s performance, although the shareholders will be holding shares which are no longer quoted and traded on the exchange, the bourse said.

In September 2020, Nationwide Express’ independent auditor Ernst & Young PLT had flagged the company’s ability to continue as a going concern, pointing out its net loss of RM35.3 million and RM49.9 million at the group and company level respectively, for the financial year ended March 31, 2020 (FY20).

It also noted that nationwide reported a shareholders deficit of RM9.1 million and RM3.3 million on a group and company level respectively, from surpluses of RM35.4 million and RM46.6 million in FY19.

Additionally, the group’s current liabilities on a group level exceeded current assets by RM18.2 million, from RM26.5 million in FY19. On a company level, the difference is RM3.3 million, from RM800,000 in FY19.

The group was classified as a PN17 company on Feb 24, 2020 after its shareholders’ equity fell to less than 50% of its paid-up share capital.