KUALA LUMPUR (Aug 28): Khee San Bhd (KL:KHEESAN) said on Friday that the freezing order on six bank accounts belonging to its wholly owned subsidiary Khee San Food Industries Sdn Bhd (KSFI) has been lifted, allowing the accounts to be used again.
“The six accounts were unfreezed at about 7.30pm on Aug 27 and are now available for use by KSFI,” the confectionery manufacturer said in a filing with the exchange.
The company said the lifting of the order is expected to substantially mitigate the immediate operational impact arising from the freezing of the accounts.
“Based on the information currently available to the board, the matter is not expected to have a material financial impact on the group,” it said.
The six accounts, which had a combined balance of about RM1.89 million, were frozen on Aug 21 amid an investigation under Malaysia’s anti-money laundering law.
Khee San had previously said it had yet to receive formal written clarification from the police on the circumstances surrounding the investigation. It stressed that the matter was not due to or connected with the operations or business activities of the group.
Trading in Khee San shares was halted for one hour on Friday and resumed at 10am. The stock was last traded at 10 sen, giving the company a market capitalisation of RM122.8 million.