As previously announced on 26 November 2001, an extension of time of up to 31 December 2002 to obtain all regulatory approvals necessary for the implementation of restructuring plans (the Stipulated Deadline) was granted to all PN4 Companies that made the First Announcement that they were affected listed issuers under PN4 on or before 31 December 2001 (Specified PN4 Companies).
I. Commencement of De-listing Procedures on Specified PN4 Companies
After 31 December 2002, the KLSE will commence de-listing procedures for Specified PN4 Companies that have failed to obtain all regulatory approvals necessary for the implementation of their regularisation plans by the Stipulated Deadline and that have not already been granted any further extensions of time.
Specified PN4 Companies were reminded on 26 November 2001 of the consequences of not obtaining all regulatory approvals necessary for the implementation of their regularisation plans by the Stipulated Deadline, that is the KLSE will commence de-listing procedures for such companies, where appropriate, after 31 December 2002.
Further, on 8 July 2002 the KLSE had issued another reminder to all Specified PN4 Companies to take all necessary steps to regularise their financial condition expeditiously.
The KLSE would like to clarify that the "commencement of de-listing procedures " refers to the initiation of a process and does not imply an automatic de-listing of the securities of PN4 Companies from the Official List of the KLSE. This essentially means that prior to making a decision on these Specified PN4 Companies, the KLSE will allow Specified PN4 Companies an opportunity to make representations to the KLSE as to why their securities should not be de-listed from the Official List of the KLSE.
Upon due consideration of the matter and the conclusion of the relevant due processes accorded, the KLSE will decide whether to de-list the Specified PN4 Companies. Where a decision is made to de-list a particular Specified PN4 Company, the Specified PN4 Company will be notified of the same accordingly.
The Specified PN4 Company will be required to make an immediate announcement upon receipt of the notification of the decision by the KLSE to remove its securities from the Official List of the KLSE. The securities of the Specified PN4 Company will be removed from the Official List of the KLSE on a date specified by the KLSE.
II. Effect of De-listing of the securities from the Official List of the KLSE
In the event of the de-listing of the securities of a company from the Official List of the KLSE, the securities may remain deposited with the Central Depository System (CDS) operated by Malaysian Central Depository Sdn Bhd (MCD). It is not mandatory for the securities of a company which has been de-listed to be withdrawn from the MCD.
Shareholders who intend to withdraw their securities from CDS or to transfer their securities may do so at any time after the securities are removed from the Official List of the KLSE by submitting the application form for withdrawal or a transfer in accordance with the rules of the MCD. The application forms for withdrawal or a transfer may be obtained from stockbroking companies, all of which are Authorised Depository Agents of MCD.
In this regard, it is also important to note that upon the de-listing of a company from the Official List of the KLSE, the company will continue to remain as a public company with its existing shareholders. Despite being de-listed from the Official List of the KLSE, the company can continue its business and operations. However, as the company would not be listed on the KLSE, shareholders will not be able to trade their shares on the KLSE .
III. Process of the KLSE in respect of Specified PN4 Companies that have obtained all regulatory approvals but have failed to comply with the Stipulated Time Frame for Implementation
Specified PN4 Companies which have obtained all regulatory approvals necessary for the implementation of their regularisation plans on or before 31 December 2002 must proceed to implement their plans expeditiously within the time frames or extended time frames prescribed by the relevant regulators.
In the event these Specified PN4 Companies fail to implement their plans within the time frames or extended time frames prescribed by the relevant regulators, the KLSE will commence de-listing procedures against them after 31 December 2002. However, as outlined above, the KLSE will accord due process to such companies including allowing them an opportunity to make representations to the KLSE as to why their securities should not be de-listed from the Official List of the KLSE.
IV. Process of the KLSE in respect of Non Specified PN4 Companies
Non Specified PN4 Companies i.e. PN4 Companies which make their First Announcement after 31 December 2001 continue to be required to perform the various obligations imposed under PN4 to regularise their financial condition within the timeframes prescribed pursuant to PN4. In the event these Non Specified PN4 Companies fail to comply with any one or more of such obligations within the timeframes prescribed and no extension of time is granted the KLSE may commence de-listing procedures against them.
V. Trading Status of PN4 Companies
All PN4 Companies that fail to comply with the timeframes prescribed by the KLSE pursuant to PN4 and have not been granted extension of time may also have their securities suspended from trading. The KLSE will accord such companies an opportunity to make representations to the KLSE as to why their securities should not be suspended. When the KLSE makes a decision to suspend a particular PN4 Company, its securities will be suspended upon the expiry of five market days from the date of notification of the decision of the KLSE. PN4 Companies will be required to make an immediate announcement of the notification of KLSE's decision to effect a trading suspension. Investors will therefore be duly informed of the suspension of the securities of the PN4 Companies.
VI. Statistics on PN4 Companies
As at 31 October 2002, there are a total of 97 PN4 Companies, out of which 82 are Specified PN4 Companies. These 82 Specified PN4 Companies represent 9.5 % of the total number of 861 companies listed on the Exchange, with an aggregate market capitalisation of only RM4.34 billion, representing 0.9% of the total market capitalisation of RM489.93 billion of the KLSE.
A total of 23 Specified PN4 Companies have obtained all regulatory approvals necessary for the implementation of their regularisation plans.
As stated above, a company which is de-listed will remain as a public company with existing shareholders. As such, the business and commercial affairs of the company can continue. The company can still continue to regularise its financial condition. However, with the de-listing of the company's securities from the Official List of the KLSE, investors and shareholders will not be able to trade the company's securities on the KLSE.
