Scomi Energy Faces Suspension Possible Delisting After Blow From Bursa Securities

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Trading in the shares of Scomi Energy Services Bhd will be suspended on July 24, with the company facing a delisting on July 26 if an appeal is not filed by July 21. (Facebook pic)PETALING JAYA: Scomi Energy Services Bhd’s shares will be suspended on July 24, with a possible delisting on July 26 after Bursa Malaysia Securities Bhd (Bursa Securities) rejected its application for a further extension of time to submit its Practice Note 17 (PN17) regularisation plan.
Bursa Securities announced its decision in a filing on the company today. It said if Scomi Energy files an appeal against the delisting by July 21, the July 26 delisting will be deferred pending a decision on the appeal.
“However, Bursa Securities will proceed to suspend the trading of the company’s securities on July 24 even though the decision on the company’s appeal is still pending,” it added.
The company filed the application for more time to submit its regularisation plan on May 17, asking for the May 31 deadline to be pushed to Nov 30.
The regulator said Scomi Energy’s application was rejected as the company had not demonstrated to its satisfaction any material development towards the finalisation and submission of the regularisation plan to the regulatory authorities.
“Upon the de-listing of the company, it will continue to exist but as an unlisted entity. The company is still able to continue its operations and business and proceed with its corporate restructuring and its shareholders can still be rewarded by the company’s performance.
“However, the shareholders will be holding shares which are no longer quoted and traded on Bursa Securities,” it added.
Scomi Energy is a global technology company in the energy and logistics industries. Its business segments are drilling services, marine services, and development and production asset and services.
The company fell into PN17 status in January 2020, when its shareholders’ equity on a consolidated basis fell below 50% of its issued share capital.
In December 2019, its indirect wholly-owned unit KCOB Capital Bhd defaulted in parts of its Series E bonds amounting to RM55 million, which subsequently triggered a cross-default in the company, raising the total to RM147.8 million.
It then disposed of multiple subsidiaries for a combined sum of RM21 million. This included its core business in offshore drilling services, which provided 75% of its revenue, to several parties including subsidiaries of Cahya Mata Sarawak Bhd.
The disposal was conditional upon approval of its secured lenders to a scheme of arrangement and was accompanied by a one-time debt waiver of about RM122.1 million to fully resolve its indebtedness.
In January this year, Scomi announced it no longer had any defaults, saying it had resolved its debt obligations to secured lenders after disposing of its offshore drilling services business.
Scomi Group Bhd currently holds a 12.22% stake, having pared its stake down from 28.46% in February.
Scomi Energy’s largest shareholder is now Nik Awang @ Wan Azmi Wan Hamzah with an 18.11% stake, followed by former Renong Bhd managing director Mohd Zakhir Siddiqy Sidek’s 12.77%, held under Gelombang Global Sdn Bhd.
Scomi shares closed unchanged at 4 sen today, giving the company a market capitalisation of just RM18.7 million. - FMT

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