KUALA LUMPUR: Khee San Bhd has received shareholders' approval for its proposed regularisation plan at its EGM on Monday, laying a strong foundation to uplift its Practise Note 17 (PN17) company status.
In a statement today, Khee San said the plan includes a proposed rights issue with warrants, a scheme of arrangement with creditors, and a share capital reduction.
"These measures are expected to strengthen the company's financial position, ensuring its ability to meet obligations and pursue growth opportunities," it said.
Khee San said the rights issue is expected to raise up to RM96 million, which will be used to fund the company's restructuring efforts and restore financial stability.
The company will also introduce an employees' share scheme as part of the regularisation plan, aimed at attracting and retaining key talent to support its future growth.
Following its PN17 status, Khee San has taken steps to achieve a turnaround, with new majority shareholders and the finalisation of the regularisation plan laying the groundwork for sustained profitability and growth.
Looking ahead, it said Malaysia's sugar confectionery retail sales is expected to grow to RM485 million by 2026.
To tap into opportunities, Khee San has outlined robust expansion plans, including investment in a new high-speed production line to increase manufacturing capacity, entry into additional new export markets, as well as continued product development.
Its executive chairman Yong Loong Chen said the company has a strong track record of 48 years in manufacturing high quality and diversified candy products since its establishment in 1976.
Yong said the company will continue to build on this in order to position the company for sustained growth in the competitive confectionery market.
"Towards this end, the approval of the regularisation plan is a significant step forward for Khee San.
"With a solid plan for financial recovery, we are confident that the company is on the right path toward long-term success," he added.