Extension Of Timeframe For The Utilisation Of Proceeds From The Disposal By Petrochemical Hub Sdn. Bhd., A Wholly-Owned Subsidiary Of Naim Holdings Berhad, Of Two (2) Parcels Of Land For Total Cash Consideration Of RM340 Million ("DISPOSAL")

BackAug 25, 2022
Type Announcement
Subject OTHERS
Description EXTENSION OF TIMEFRAME FOR THE UTILISATION OF PROCEEDS FROM THE DISPOSAL BY PETROCHEMICAL HUB SDN. BHD., A WHOLLY-OWNED SUBSIDIARY OF NAIM HOLDINGS BERHAD, OF TWO (2) PARCELS OF LAND FOR TOTAL CASH CONSIDERATION OF RM340 MILLION ("DISPOSAL")

 

 

The Board of Directors of Naim Holdings Berhad (“NAIM” or “the Company”) wishes to announce that the Company had decided to extend the timeframe for the utilisation of proceeds from the Disposal. This announcement is made pursuant to paragraph 9.19(47)(a) of the Main Market Listing Requirements (“MMLR”) of Bursa Malaysia Securities Berhad (“Bursa Securities”).

 

On 6 October 2020, the Company obtained approval from its shareholders for the Disposal. The Disposal was completed on 21 October 2020.

 

The Board has decided to extend the timeframe for the utilisation of the remaining unutilised proceeds from the Disposal allocated for capital investment segment for an additional 24 months (i.e. up to 20 October 2024) (“Extended Timeframe”). The details of the Extended Timeframe are as follows:

 

 

 Details of utilisation

Approved Utilisation

(RM million)

Actual Utilisation

(RM million)

Remaining unutilised

(RM million)

Approved timeframe for utilisation

Extended timeframe for utilisation

Capital investment

15

-

15

Within 24 months from completion

Within 48 months from completion(1)

Repayment of bank borrowings

117

117

-

Within 12 months from completion

-

Dividends to shareholders

90

90

-

Within 12 months from completion

-

Working capital for property development activities

75

75

-

Within 18 months from completion

-

Estimated expenses in relation to the Disposal

43

43

-

Within 9 months from completion

-

Total

340

325

15

 

 

 

Note:-

  1. The additional timeframe for 24 months for the utilisation of the proceeds for capital investment of RM15 million is to enable the Company to carry out detailed technical and economic feasibility studies on the proposed new capital investment.

The extension of timeframe for the utilisation of Disposal proceeds is not subject to any approvals from Bursa Securities and shareholders of the Company. Nevertheless, the Board shall continue to be vigilant and prudent in managing the Disposal proceeds and will continue to disclose the status of the utilisation of proceeds in the Company's annual reports until it is fully utilised.

 

This announcement is dated 25 August 2022.

 

Announcement Info

 

Company Name NAIM HOLDINGS BERHAD
Stock Name NAIM
Date Announced 25 Aug 2022
Category General Announcement for PLC
Reference Number GA1-23082022-00061