TIME ENGINEERING BHD [ ] expects to be lifted from Amended Practice Note 17 (PN17) status by year-end, as its board continues to pursue the full implementation of a group restructuring exercise that could significantly lower its gearing, sources said.
It is learnt that the proposed revamp, which includes a capital reduction and debt restructuring, would pave the way for Time Engineering to repay its debt to Bank Pembangunan Malaysia Bhd (BPMB).
Last Friday, shareholders voted for Time Engineering to embark on its capital reduction exercise that would see the par value of its shares lowered to 20 sen each from RM1.
Shareholders also gave their mandate to the group to dispose of the entire 28.69% stake comprising up to 726.18 million shares in TdC.
It is understood that the Time Engineering board would not sell the 28.69% stake in TdC for less than 48 sen a share, which is also the par value of the RSLS. Given that the market is expected to recover, the board wants to realise the potential upside in TdC's share price. TdC fell one sen to 37.5 sen last Friday, with 2.7 million shares traded.
With the cessation of share losses in TdC, Time Engineering, which is 45%-owned by UEM Group Bhd, could remain a profitable entity and pursue more local and international jobs.
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