KUALA LUMPUR (May 9): Shares of Sarawak Cable Bhd (KL:SCABLE) fell to its lowest in five months on Wednesday after the loss-making cable manufacturer's so-called resuscitation exercise has been terminated.
Sarawak Cable declined four sen or 25% to 12 sen, its lowest since Dec 12, 2023. The stock pared its losses to close at 13 sen at noon break, with some 16.86 million shares traded, compared to its 200-day average volume of 13.11 million. At 13 sen apiece, Sarawak Cable is valued at RM51.87 million.
The stock is down more than 68% year-to-date following wild swings since December 2023. The stock surged in December after Sarawak Cable announced that it had found its white knight in the UK-based Serendib Capital Ltd before tumbling in January after reporting its eighth consecutive quarter of losses.
No institutional analyst covers the stock.
Sarawak Cable announced on Wednesday that a memorandum of agreement signed with Serendib Capital on Dec 29, 2023 had fallen through as both parties were unable to agree upon an exclusive working relationship, according to its bourse filing.
Serendib planned to undertake a “resuscitation exercise” to revive the company as well as prepare a war chest of RM250 million to help pare down its debts and recapitalise the company to cater to growing customer demand for infrastructure grid development and high-voltage cables, past statement showed.
The details of the “resuscitation exercise” were not disclosed. Sarawak Cable fell into PN17 status in September 2022 due to concerns raised by its external auditor about its viability as a going concern, after certain financial institutions suspended the group's credit facilities.
The company’s deadline to submit its regularisation plan has also been extended several times with Sept 30 being its latest deadline.