KUALA LUMPUR (Jan 16): Practice Note 17 (PN17) company MMM Group Bhd (KL:MMM), formerly known as Asia Media Group Bhd, has unveiled a fresh regularisation plan following Bursa Malaysia’s approval of its appeal against delisting.

Its second new regularisation plan since falling into PN17 in 2019, the plan comprises fundraising exercises — a rights issue with warrants and a private placement — alongside a RM16 million acquisition. 

Announced on Jan 16, the new proposal includes a 10-for-1 share consolidation, a private placement of about 9.34 million shares, and a renounceable rights issue of up to 323.75 million new shares with free detachable warrants. These measures form part of a capital restructuring aimed at restoring compliance with Bursa’s Main Market listing requirements.

On a full subscription basis, the rights issue is expected to raise about RM38.85 million. Grand Portfolio Sdn Bhd, controlled by Chen Jui-Liang, has undertaken to subscribe for at least 108.33 million rights shares.

Grand Portfolio currently holds 12.51% of MMM Group and is projected to increase its stake to 30.81% after the exercise. Incorporated in 2021, Grand Portfolio previously built up its stake in MMM Group through direct market acquisitions.

Together with the private placement, the MMM group expects to raise a total of RM39.97 million — RM38.85 million from the rights issue and RM1.12 million from the placement. The company said the revised plan will supersede all previously announced proposals as it seeks to strengthen its balance sheet and operational footing.

From the funds raised, MMM Group plans to acquire EDSB Outdoor Sdn Bhd for RM16 million, through a combination of cash and new shares. Established in 1997 and headquartered in Petaling Jaya, EDSB Outdoor is a player in Malaysia’s outdoor advertising industry, providing billboard and out-of-home media solutions nationwide. The company is owned by Chong Yoke Lai and Gan Soon Choon.

As part of the acquisition terms, the vendors have jointly guaranteed that EDSB will achieve an audited profit after tax (PAT) of RM2 million for each of the financial years ending Dec 31, 2026, 2027, and 2028, amounting to a total guaranteed PAT of RM6 million.

MMM Group also intends to invest RM12.16 million to convert EDSB’s static billboards into digital formats, while allocating RM3 million to repay borrowings and RM5.61 million for working capital.

Subject to approvals and barring unforeseen circumstances, MMM Group expects to complete the proposed regularisation plan by the second half of 2026.

At its last close of 1.5 sen, the group carried a market capitalisation of RM4.67 million.

M&A Securities has been appointed as the principal adviser for MMM Group’s proposed regularisation plan, as well as the placement agent for the private placement and underwriter for the rights issue with warrants.

MMM Group’s latest restructuring efforts come after a series of false starts. 

MMM Group slipped into PN17 status in October 2019 after its shareholders' equity fell to less than 25% of its issued capital. 

Its first plan was submitted in 2022 after Covid-19 relief and requested extensions. A revised plan was announced in December 2024 after a number of issues with its plans including a complaint against the company’s financial results for the financial year ended March 31, 2022. 

After being cleared of irregularities, a withdrawal of its revised regularisation plan and a few more extensions, the company filed an updated plan in January 2025. 

Bursa Malaysia rejected the updated plan in July 2025, leading to a trading suspension in August, and MMM Group was asked to submit a new plan by Jan 29, 2026 to avoid delisting.

For the first half of the financial year 2026 ended Sept 30, 2025, MMM Group posted a net profit of RM624,000 on a revenue of RM8.49 million, compared with a net loss of RM918,000 on a revenue of RM2.91 million a year earlier.

However, Bursa Malaysia noted that MMM Group’s profits in recent years were mainly driven by fair value gains on investments. Excluding these one-off gains, the group recorded losses in FY2024, FY2025 and the three months ended March 31, 2025, with only FY2023 showing a small underlying profit.