SC urges investors to keep track of PN4 companies regularisation activities, issues list of PN4 companies under Stage 1 and Stage 2

The Securities Commission (SC) urges investors to keep close tabs on PN4 (Kuala Lumpur Stock Exchange Practice Note 4/2001) companies and their regularisation efforts, when making investment decisions in these companies.

In particular, the SC advises investors to pay attention to critical PN4 companies i.e. those companies that are required to regularise their financial positions by 31 December 2002 but have not even made the requisite announcements on their regularisation plans (Stage 1), as well as those that have made the requisite announcements but have not as yet made any submission to the SC and other relevant authorities (Stage 2).

“These Stage 1 and Stage 2 PN4 companies are critical because if they don’t take immediate measures to regularise their position by the extended deadline of 31 December 2002, they could be delisted,” said the SC Chairman Datuk Ali Abdul Kadir.

The SC hosted a closed-door dialogue with Stage 1 and Stage 2 PN4 companies yesterday. This is the second closed-door dialogue that the SC has had with PN4 companies – the last was in April this year.

To aid investors in their decision-making, the SC today released a list of 48 PN4 companies that are required to regularise their position by 31 December 2002 but are still under Stage 1 and Stage 2. A list of these companies is available here. The SC will issue updates on these companies on a monthly basis.

These 48 companies are among the 99 PN4 companies as at 31 July 2002. The other 51 PN4 companies are in the stages of waiting for approval from the SC and other relevant authorities for their restructuring proposals (Stage 3), or in the process of implementing their approved proposals (Stage 4), or are not due yet to make their requisite announcements of their restructuring proposals.

Datuk Ali said aside from the extension of the deadline for the regularisation of financial positions until the year-end, the SC has also granted several flexibilities to facilitate and expedite fund-raising and restructuring exercises by PN4 companies.

He said the onus was now on these PN4 companies to meet their obligations quickly before the deadline or these companies would face the prospect of delisting.

“PN4 companies” are affected listed companies that fail to meet the financial conditions for continued trading and listing on KLSE. In this context, the provisions of PN4 are intended to ensure that affected listed companies take expeditious steps to regularise their financial conditions within the stipulated time frame. PN4 also aims to protect the interests of investors by ensuring that sufficient information disclosures are made on the progress of the restructuring plans of affected listed companies, and by imposing penalties on affected listed companies that do not meet the requisite deadlines. Listed companies that became PN4 companies on or before 31 December 2001 were given an extended deadline until the end of the year to regularise their financial positions while those companies that are classified as PN4 companies after 31 December 2001 have up to 12 months to do so, from the date they were classified as PN4 companies.

31 July 2002


Stage 1 (Requisite Announcement Due But Pending)

Main Board

Second Board

1. Abrar Corporation Berhad 1. Autoways Holdings Berhad
2. Actacorp Holdings Berhad 2. Bridgecon Holdings Berhad
3. Arus Murni Corporation Berhad 3. Geahin Engineering Berhad
4. CHG Industries Berhad 4. Hotline Furniture Berhad
5. Kemayan Corporation Berhad 5. Jutajaya Holdings Berhad
6. Mancon Berhad 6. Long Huat Group Berhad
7. Mentiga Corporation Berhad 7. Nauticalink Berhad
8. NCK Corporation Berhad 8. Pancaran Ikrab Berhad
9. Pan Pacific Asia Berhad 9. Penas Corporation Berhad
10. Parit Perak Holdings Berhad 10. Seng Hup Corporation Berhad
11. Plantation & Development (M) Berhad 11. Southern Plastic Holdings Berhad
12. Promet Berhad 12. Timbermaster Industries Berhad
13. Rekapacific Berhad 13. Trans Capital Holding Berhad
14. Sateras Resources (M) Berhad 14. Transwater Corporation Berhad
15. Tongkah Holdings Berhad 15. United Chemical Industries Berhad
16. Wembley Industries Holdings Berhad 16. Woo Hing Brothers (Malaya) Berhad
17. Wing Tiek Holdings Berhad 17. Zaitun Berhad

Stage 2 (Pending Submission of Regularisation Proposal)

Main Board

Second Board

1. Aokam Perdana Berhad 1. Denko Industrial Corporation Berhad
2. Construction and Supplies House Berhad 2. Esprit Group Berhad
3. Kelanamas Industries Berhad 3. Kiara Emas Asia Industries Berhad
4. Malaysian General Investment Corporation Berhad 4. Seloga Holdings Berhad
5. Omega Holdings Berhad 5. Tajo Berhad
6. Sriwani Holdings Berhad
7. Tai Wah Garments Manufacturing Berhad
8. The North Borneo Corporation Berhad
9. MBF Capital Berhad