KUALA LUMPUR (April 28): Pimpinan Ehsan Bhd (KL:PEB) has proposed to distribute RM62.9 million in cash to shareholders and voluntarily delist from the Main Market of Bursa Malaysia after the collapse of its long-delayed Practice Note 16 (PN16) regularisation plan involving renewable energy firm reNIKOLA Holdings Sdn Bhd.
In a Bursa Malaysia filing on Tuesday, Pimpinan Ehsan said it plans to undertake a capital reduction and repayment exercise to return 91 sen per share to entitled shareholders on a date to be determined later.
According to Bloomberg, Pimpinan Ehsan's largest shareholder is Pitahaya (M) Sdn Bhd, which owns 37.4% or 25.85 million shares. Pitahaya is expected to receive about RM23.53 million based on the proposed 91 sen per share cash distribution.
Another substantial shareholder, Lim Beng Guan, who is also a director of reNIKOLA, holds 9.36% or 6.47 million shares. He is expected to receive RM5.89 million from the cash distribution.
The proposed distribution will be funded from the company’s cash reserves held in a custodian account, which stood at about RM65.17 million as at April 22, including interest earned.
Pimpinan Ehsan said the cash distribution and delisting are subject to shareholders’ approval, court confirmation for the capital reduction, and Bursa Malaysia’s approval for the delisting.
The company said it intends to complete the proposals in the third quarter of 2026.
The move came after Pimpinan Ehsan announced earlier on Tuesday that it would not proceed with its proposed regularisation plan after receiving a letter from reNIKOLA stating that the renewable energy group had decided to withdraw from the deal.
"..after due consideration of the current status of the proposals and the time period given for Pimpinan Ehsan to submit its proposed regularisation plan by June 30, 2026, reNIKOLA has decided not to proceed with the proposals.
“Accordingly, the board has decided not to proceed with the proposals,” reNIKOLA's said.
Pimpinan Ehsan said following the withdrawal, the board was of the view that the company would not be able to comply with Bursa’s June 30 deadline to submit a regularisation plan.
It said returning the cash reserves to shareholders on a pro-rata basis was therefore in the best interest of shareholders.
Upon completion of the proposed distribution and delisting, the board intends to voluntarily wind up the company. Any remaining cash after the winding-up process will be distributed to shareholders on a pro-rata basis through a further capital repayment or other means.
Pimpinan Ehsan was classified as a PN16 cash company in 2018 after disposing of its wholly-owned subsidiary TRIplc Bhd to Puncak Niaga Holdings Bhd (KL:PUNCAK) for RM210 million.
Since then, the company had for several years sought to regularise its status through the proposed injection of income-generating solar power assets via reNIKOLA.
The plan was first announced in May 2021, followed by a formal proposal in June 2022 involving new share issuances and a private placement to fund the acquisition of several solar assets, before being expanded in 2023 to include additional renewable energy assets.
Bursa had in January this year granted Pimpinan Ehsan a final extension until June 30 to submit its regularisation plan, warning that failure to do so would result in the suspension of trading of its shares and eventual delisting.
Pimpinan Ehsan shares were untraded on Tuesday. The counter last closed at 81.5 sen, valuing the company at RM56.3 million.