Premier Nalfin a step closer to restructuring

by **Cals** Tue 24 Sep 2013, 12:51

Premier Nalfin a step closer to restructuring
Business & Markets 2013
Written by Esther Lee of theedgemalaysia.com
Tuesday, 24 September 2013 11:00

KUALA LUMPUR: Premier Nalfin Bhd, which is cash-rich but without a core business, is a step closer to its restructuring plan.

The company announced to Bursa Malaysia yesterday that it had appointed a due-diligence solicitor to assist with its restructuring exercise.

Premier had earlier proposed to acquire rail track solutions provider Emrail Sdn Bhd as part of its regularisation plan. To date, Premier and Emrail’s shareholders have extended the heads of agreement (HOA) twice.

It was reported that Emrail and its consortium partner, Zabima Engineering and CONSTRUCTION [] Sdn Bhd, had firmed up the 40-year concession agreement with the government for the RM2.3 billion Kinrara-Damansara Expressway (KiDEx). However, Emrail has denied any knowledge of this.

Premier had entered into an HOA with Emrail’s shareholders Magniplan Sdn Bhd, Nobelmax Resources and Datuk Hafarizam Harun to acquire the entire issued and paid-up capital of Emrail through a special purpose vehicle in 2012.

Magniplan holds a 40% stake in Emrail, while Nobelmax and Hafarizam own 30% each. The plan was for Emrail to take over Premier and provide it with a new core business.

Nevertheless, the HOA came to a halt due to an injunction filed by Sri Lanka-based Agro Asia Pacific Ltd. In April, Premier announced that the injunction had been lifted as both parties managed to “amicably settled their dispute”.

Three months later, Premier said it had submitted an application to Bursa to request for an eight-month extension to submit its regularisation plan.

Premier’s 2012 annual report revealed that it had cash balances of RM116.23 million with no borrowings.

The counter closed at 33 sen yesterday, unchanged from the previous trading day, giving the company a market capitalisation of RM111.2 million. — by Esther Lee

This article first appeared in The Edge Financial Daily, on September 24, 2013.