KUALA LUMPUR: Financially-troubled Scomi Energy Services Bhd looks to be throwing in the towel after it decided not to proceed with the regularisation plan it announced on January 12, 2024 and terminated the services of its principal advise to the plan.
Up until July 1, 2024 the company had said that it was in the midst of finalising its regularisation plan which was due July 31, 2024.
Without disclosing the reason for the decision, Scomi Energy said the board of directors, after further deliberation, has decided to discontinue the regularisation plan to address its financial condition.
"Pursuant thereto, Scomi Energy and M&A Securities have mutually agreed to terminate M&A Securities' services as the principal adviser to the company for the regularisation plan with effect from July 9, 2024," it said in filing with Bursa Malaysia on Wednesday.
Scomi Energy slipped into Bursa Malaysia's Practice Note 17 status on January 21, 2020.
The regularisation plan announced in January 2024 involved diversification into the construction business and accepting a RM140.03 million contract from Dhaya Maju Infrastructure (Asia) Sdn Bhd (DMIA) for the construction and maintenance of the proposed upgrades to the Keretapi Tanah Melayu Bhd station and facilities under the Klang Valley Electrified Double Track Phase 2 project.
Scomi Energy also proposed a private placement of 35.125 million new shares, representing 60 per cent of its enlarged issued shares, at 22 sen per placement share to DMIA founder and executive director Datuk Seri Dr Subramaniam Pillai Sankaran Pillai.
The plan included a share consolidation, which would reduce the group's issued share capital from RM445.535 million to RM35,000 by cancelling RM445.5 million of its share capital, followed by consolidating every 20 existing shares into one consolidated share.
Trading in its shares have been suspended since July 2023, it last traded at one sen a share.
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