KUALA LUMPUR: Practice Note 17 (PN17) company Sarawak Cable Bhd's stock price hit a five-month low of 12 sen, before rebounding to close unchanged, after the collapse of its deal with white knight, UK based investor Serendib Capital Ltd.
Sarawak Cable is run by the late Tun Abdul Taib Mahmud's son Datuk Seri Mahmud Abu Bekir Taib. He is its non-independent, non-executive chairman.
Its share price fell by 25 per cent to 12 sen at noon but later recovered to 16 sen.
Sarawak Cable's market capitalisation stood at RM63.84 million.
In a statement submitted to Bursa Malaysia Securities Bhd yesterday, the company said both parties were unable to reach an agreement on an exclusive partnership outlined in a Memorandum of Agreement signed on Dec 29, 2023.
"The company will announce as and when there are any updates on this matter," it said.
Serendib Capital emerged as a white knight for Sarawak Cable in December 2023.
Sarawak Cable was classified as a PN17 company in October 2022.
Serendib Capital had prepared a RM250 million war chest to be used to restructure and pay down outstanding creditors, as well as for an injection of capital into the company to cater to the growing customer demand for infrastructure grid development and high voltage cables.
On May 2, Bursa Malaysia granted Sarawak Cable a six month extension, up to Sept 30, 2024, for the company to submit its regularisation plan.