KUALA LUMPUR (May 25): The Practice Note 17 (PN17) company Perak Corp Bhd has narrowed its net loss for the first quarter ended March 31, 2022 (1QFY22) to RM1.2 million from RM6.29 million a year ago, due to profit from the sale of land by a former subsidiary under its property development segment.

Quarterly revenue saw a slight decrease of RM32.2 million in 1QFY22 compared with RM33.67 million in 1QFY21, amid lower revenue generated from the port and logistics segment.

The port and logistics segment revenue comprises mainly of revenue from port operations for the provision of port facilities and ancillary services at Lumut Maritime Terminal operation (LMT) and maintenance of Lekir Bulk Terminal and rental of LMT port related industrial land.

For the quarter under review, the revenue of the port and logistics segment of RM27.7 million is lower the previous year’s RM30.2 million, due to lower contribution of throughput as a result of increase in freight charges, causing companies to adjust their supply chain strategies; shipping delays due to China’s Covid-19 lockdown; and the Indonesian government's lift of a ban on coal exports.

“The group’s future prospect is dependent on its efforts to formulate a suitable regularisation plan with all other stakeholders and boost its existing business activities, as well as venture into new businesses if it deems fit and proper, in order to uplift the Company from being an Affected Listed Issuer under the PN17 Listing Requirements.

“The group will continue to explore new opportunities and review its capital and business structure to gear itself towards the exit of being an Affected Listed Issuer.

“At this juncture, the group is still evaluating its options and in the midst of formulating a proposed regularisation plan to regularise the Company’s Affected Listed Issuer status,” added the Perak state government’s property development arm in a bourse filing.

In a separate filing, Perak Corp said its wholly-owned unit PCB Equity Sdn Bhd is disposing of its entire equity interest in network facilities provider VC Telecoms Sdn Bhd for RM12.5 million.

PCB Equity’s investment in VC Telecoms comprises 9.8 million shares, representing 49% equity interest in VC Telecoms. Upon completion of the disposal, VC Telecoms shall cease to be an associate company of PCB Equity and Perak Corp.

PCB Equity has entered into a sale and purchase agreement for shares with the purchaser Mohd Khalib Shuib and VC Telecoms. Mohd Khalid is one of the shareholders in VC Telecoms, holding a 45% stake in the group.

“The total consideration for the proposed disposal of RM12,500,000 is in the form of cash and is arrived at on the basis of RM1.28 per sale share. The consideration was arrived at on a “willing buyer-willing seller” basis,” said Perak Corp.

According to the group, the exercise would result in a one-off gain to the Perak Corp Group, as the cost of investment in VC Telecoms has been fully impaired. Furthermore, the exercise is also timely for the group to raise funds as part of its regularisation efforts to monetise its investment of its non-core business.  

“The company provided a corporate guarantee to [the] bank for financing facilities granted to VC Telecoms. The release of the existing corporate guarantee upon completion of the proposed disposal would result in one-off reversal of impairment losses on financial guarantee liabilities in the Statement of Comprehensive Income. The proposed disposal would absolve the obligations of the company from having to give any corporate guarantee for financing facilities to be taken by VC Telecoms in the future,” it added.

Barring any unforeseen circumstances, the exercise is expected to be completed by the end of November 2022.

Edited by Kamarul Azhar

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