PETALING JAYA: Bursa Securities has rejected rubber compounds manufacturer GIIB Holdings Bhd’s proposed private placement, citing charges against some of its directors under the Malaysian Anti-Corruption Commission (MACC) Act 2009 which are still pending in court.
GIIB had in April proposed to undertake the private placement of up to 81.96 million new shares, or 10% of its issued share capital, to raise up to RM6.97 million for its working capital.
“Based on the representations made in the additional listing application (ALA) in relation to the proposed private placement, Bursa Securities took note there are certain charges made against certain directors of GIIB pursuant to the MACC Act of which the matters are still pending the decision by the court,” said GIIB in a filing today.
“Given that corporate governance practices by the listed issuer and its directors is one of the key areas that Bursa Securities takes into consideration when processing the ALA, the MACC charges have given rise to concerns on the corporate governance practices. As such, Bursa Securities is unable to consider the ALA,” the filing added.
In a June 15 filing, GIIB disclosed that then executive chairman Tai Boon Wee and the group’s two other executive directors – Boon Wee’s son Qiyao and Wong Ping Kiong – were remanded by MACC on May 31 to “assist in investigations of unlawful activities”.
The activities being investigated were in relation to issuance of invoice and proceeds banked into GIIB’s account, inflation of debts of a subsidiary company in a Bursa Malaysia announcement, and unauthorised payments to persons unknown.
On June 20, Boon Wee was redesignated as CEO after relinquishing his position as executive chairman. He was replaced by Wan Adnan Wan Mamat as non-executive chairman.
Earlier this year, Boon Wee and Wong were charged with the intention to deceive the principal of an auditor – Messrs Grant Thornton Malaysia PLT over the sale of machinery by the issuance of a debit note and three directors’ circular resolutions.
They pleaded not guilty to the charges. The sessions court has fixed Jan 15 to 17, 2024 for the trial.
The group’s shares closed half-a-sen or 5% lower at 9.5 sen, giving it a market capitalisation of RM56.17 million. - FMT
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