in the coming weeks although no turnaround plans have been put forward to the board of directors of the bread and confectionary maker. However, sources told StarBiz that this could happen in a matter of weeks.
- In reply to a query, the members of the special committee that was formed to take charge of the daily operations of the company said they were finalising the forensic report results and the development of a restructuring plan. “To date, we‟ve not received any proposal from Lembaga Tabung Haji (LTH),” they added.
- Meanwhile, parties whose names have been linked to the turnaround plans have denied that they were involved in any deal. LTH and Koperasi Permodalan Felda (KPF) denied that they were negotiating with the board. LTH group managing director and CEO Datuk Ismee Ismail declined to comment on the speculation.
- An investment banker noted that any white knight coming in would have to resolve the company‟s debt woes. “If that‟s not resolved, the company will go under,” he said. Moreover, the banker said KPF might not be the party favoured by others to take over since the condensed milk joint venture with Silver Bird was one of the businesses that have come under scrutiny.
- Nevertheless, there have been speculation that LTH and KPF or a combination of the two could emerge as the white knight. An industry observer said the shares of Datuk Jackson Tan have been force-sold in recent weeks and this has brought the share price down. “I believe it is only a matter of weeks when something is firmed up and an offer made,” he said. He said should the operations be run efficiently, the company should be able to post a net profit of between 10% and 12% from the revenue generated from the consumer food division, which came to RM228.60m from continuing operations in FY11. (Starbiz)
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