Will Chinese businessman be Bertam’s white knight?

KUALA LUMPUR (Sept 24): Property developer Bertam Alliance Bhd says it is roping in a Chinese white knight to help lift it from the Practice Note 17 (PN17) status.

In a filing with Bursa Malaysia yesterday, loss-making Bertam said it entered into a memorandum of understanding (MoU) with Liu Sheng Hui yesterday to negotiate in good faith with a view of entering into a definitive collaboration and/or joint-venture agreement for Liu to participate in its proposed regularisation plan, involving a proposed private placement.

The proposed regularisation plan also involves a proposed development of parcels of land owned by Bertam, specifically the 1.1ha Taman Luyang development in Kota Kinabalu, Sabah and the 1.71ha of leasehold land in Kepayan, Penampang, Sabah.

According to the filing, Liu, 56, is described as a Chinese national involved in businesses such as manufacturing pulp, paper and paperboard, the production of aluminium from alumina and travel agent, as well as technology promotion and application software services.

"He is also an independent and non-executive director of NWP Holdings Bhd," said Bertam.

Bertam said the MoU allows the two parties to negotiate exclusively for at least six months and sets out the parties' understanding and intention in respect of the proposed regularisation plan.

It added that the number of new securities to be issued pursuant to the proposed private placement had yet to be agreed and finalised.

"The proposed private placement is part of the company’s regularisation plan to regularise its PN17 condition and maintain its listing status on Bursa's Main Market," it noted.

The MoU is conditional upon the company obtaining an extension of a further six months from Bursa Securities to submit a regularisation plan to the Securities Commission Malaysia and/or Bursa.

Bertam, on March 28, announced that Bursa had granted it an extension of six months up to Oct 3 to submit its plan to regularise its financial condition.

In April last year, Bertam was classified an affected listed issuer under PN17 due to a winding-up order against its wholly-owned unit Bertam Development Sdn Bhd, accounting for at least 50% of the group’s total assets.

The proposed regularisation plan's principal adviser will be appointed in due course.

Bertam posted a net loss of RM1.5 million for the first half ended June 30, 2019 compared to a net profit of RM144,000 a year ago. Bertam shares closed unchanged at 17 sen yesterday, with a market capitalisation of RM35.15 million.

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