Friday 14 Jun 2024
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KUALA LUMPUR (Feb 3): China Automobile Parts Holdings Ltd will be delisted from Bursa Malaysia on Feb 9 after it failed to submit its regularisation plan to the relevant authorities over the past five years.

The ailing company first triggered the criteria to be classified as a Practice Note 17 firm in January 2018 after its auditors expressed a disclaimer of opinion on the group’s financial statement for the fiscal year ended Dec 31, 2015.

China Automobile was supposed to submit its regularisation plan and secure authorities’ approval by January 2019, before Bursa Malaysia Securities provided eight extensions until July 2022.

China Automobile requested a further extension in September last year, but Bursa Securities rejected the request in November. On Friday (Feb 3), the stock exchange operator dismissed the company’s appeal for a further extension.

The stock exchange operator said it has taken into account various factors before deciding to delist China Automobile, which it said had not demonstrated material development towards the finalisation and submission of its proposed regularisation plan.

Bursa Securities also noted that China Automobile’s Memorandum of Understanding with Tan Sri Joseph Lo @ Lo Tain Foh and Datuk Jonathan Low Chaw Loong, which forms part of the group’s regularisation plan, was terminated in October last year.

The MOU was meant to open up negotiation for injection of Lo’s construction assets into China Automobile, which currently has no business operations.

Bursa Securities noted that the company had been engaged in active discussions with several potential white knights including Sri Binaraya Sdn Bhd and Nirwana group of companies.

However, it said there was lack of certainty or clarity vis-a-vis formulation of a regularisation plan as it was still at a preliminary stage and the potential white knights were reluctant to issue any letters of expression of interest to participate in the proposed regularisation plan.

Bursa Securities also noted that China Automobile has yet to appoint a new principal adviser since the termination of Mercury Securities Sdn Bhd on Oct 26, 2022.

“In the opinion of Bursa Securities, adequate time and opportunity had been accorded to China Automobile to regularise the company's financial condition,” it said.

Trading in the shares of China Automobile shares has been suspended since Nov 18 last year.

Edited ByS Kanagaraju
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