KUALA LUMPUR (Dec 13): Sarawak Cable Bhd (SCB) shares were among the most briskly traded on Bursa Malaysia on Wednesday morning, after the Practice Note 17 company announced that it had found a white knight to undertake a “resuscitation exercise”. 

The stock went up as much as six sen, or 28.57%, to a one-year high of 27 sen. Its market capitalisation swelled to RM107.73 million. 

The counter was the second-most actively traded as at the time of writing, with 64.92 million shares done. For context, the counter opened at 6.5 sen per share on Tuesday. 

On Tuesday, the loss-making power cable manufacturer said UK-based Serendib Capital Ltd had prepared a war chest of RM250 million to help pare down its debts, and to recapitalise SCB “to cater to growing customer demand for infrastructure grid development and high-voltage cables”.

However, SCB did not disclose in detail whether the RM250 million will be given as a loan or an equity injection.

As at Aug 31, SCB’s current liabilities amounted to RM388.75 million, of which 84% were secured loans, while long-term debts stood at RM11.67 million. The company’s cash balance, excluding the overdraft and deposits pledged, was at RM19.42 million.

Furthermore, the company was sitting on accumulated losses of RM296.42 million as at end-August, resulting in a negative shareholder equity of RM76.6 million. 

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