Bursa approves Perak Corp’s regularisation plan to lift PN17 status

• The regularisation plan, outlined by Perak Corp in February last year, consist of a capital reduction, a joint development project, RM89.6 million in land sales, a RM40.38 million entitlement from an existing joint development, and a preference share issuance to restructure debts.

KUALA LUMPUR (Jan 20): Bursa Malaysia on Monday approved Perak Corp Bhd’s (KL:PRKCORP) proposed regularisation plan, paving the way for the Practice Note 17 (PN17) company to advance its multi-part restructuring to restore its financial viability and uplift its financially-troubled status.

The approval is subject to standard conditions, including compliance with listing requirements, obtaining all requisite authority approvals, securing shareholder approval at a general meeting, and incorporating comments in the shareholder circular, according to Perak Corp's bourse filing.

The regularisation plan, outlined by Perak Corp in February last year, consist of a capital reduction, a joint development project, RM89.6 million in land sales, a RM40.38 million entitlement from an existing joint development, and a preference share issuance to restructure debts.

The capital reduction involves cancelling RM185 million of its RM272.77 million share capital to offset accumulated losses of RM177.35 million as at end-September 2024.

Perak Corp also entered into a joint venture with major shareholder Perak State Development Corp (PKNP) in January 2025 to co-develop the Silver Valley Technology Park Industrial Hub in Hulu Kinta.

As for the land-sale component, the company is disposing of 424.7 acres in Bernam Timor for RM89.6 million, comprising 73.14 acres to Makmur Impian Property Sdn Bhd for RM21.13 million and 351.56 acres to Tanjung Malim Hi-Tech Park Sdn Bhd for RM68.44 million.

The regularisation plan also include its RM40.38 million entitlement via a supplemental agreement with PKNP and Uni-Poh Construction Works Sdn Bhd for the development of 56.3 acres of Teluk Dalam land.

To settle debts under a court-approved scheme of arrangement, Perak Corp plans to issue up to 39.73 million redeemable preference shares series B (RPS-B) at RM1 each to unsecured scheme creditors. The RPS-B carry a five-year tenure, a 2% preferential dividend, and are non-convertible. Remaining outstanding debts after issuance will be fully waived, reflecting a RM357.6 million haircut against the company’s RM379.34 million verified debt.

Perak Corp had earlier issued two other preference share series 20.9 million RPS-A1 and 14.91 million RPS-A2 in January 2022 to CIMB Bank Bhd and Affin Islamic Bank Bhd as part of debt-settlement arrangements.

The company expects to utilise RM129.95 million in proceeds from settlement entitlements and land disposals to redeem existing preference shares, fund sewerage treatment works at Bandar Meru Raya, and support working capital needs.

Shares in Perak Corp were untraded on Monday. The counter last traded at 70 sen with a market capitalisation of RM70 million.

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