SC will reject proposals by PN4 companies issued with final de-listing notice

The Securities Commission (SC) today announced that it would reject restructuring proposals from PN4 companies which have been served with the final notice to de-list by the Kuala Lumpur Stock Exchange (KLSE).

A PN4 company is a distressed listed company. It is given time and opportunities to regularise its financial position to the minimum required of a listed company, failing which KLSE will commence de-listing action against the company with the right to appeal. If the appeal is unsuccessful, the KLSE will then issue the company with the final notice for de-listing.

Once de-listing becomes a certainty, the SC would reject and return the PN4 company’s outstanding proposal, or refuse to accept a proposal if submitted after the company has been served with the notice.

“PN4 companies submit their restructuring proposals in their capacity as listed companies, but once their listing status is revoked, or de-listing becomes a certainty, the SC cannot process their restructuring proposals as those belonging to listed companies,” the SC said.

“Companies issued with the final notice by KLSE have to wait for de-listing and once they are de-listed, they can then submit fresh proposals for re-listing. Those which submit their proposals within a year will enjoy certain flexibilities, as outlined in the SC’s announcement in June this year,” the SC added. They must demonstrate financial and qualitative strength like all aspiring companies wanting to get listed and should look into building themselves up again.

De-listed PN4 companies seeking re-listing on the KLSE may refer to Guidance Note 6A issued by the SC on 18 June 2003. The guidance notes were issued pursuant to Chapter 6 of the Policies and Guidelines on Issue/Offer of Securities.

All PN4 companies submitting restructuring proposals or re-listing proposals to the SC are reminded to ensure that their submissions are complete and comply fully with the SC’s requirements. “Any proposal that is found wanting will be rejected at the outset,” the SC emphasised.

21 November 2003