Quick take: Brahim’s shares up 9.4% on regularisation plan

KUALA LUMPUR: Shares in Brahim’s Holdings Bhd shot up 9.4% after the company found a white knight to help the group get out of the practice note 17 (PN17) status.

The PN 17 company jumped 9.38%, or three sen to 35 sen in early trade Monday. It is currently the second most actively traded counter with 10.35 million shares done.

Brahim’s has entered into a heads of agreement (HOA) with MRI VC Bhd (formerly known as UZ Catering Bhd) to secure and set out the basis of MRI’s participation in the group’s proposed regularisation plan.

“It is envisaged that a fund-raising exercise will form an integral part of the proposed regularisation plan.

“The fund-raising exercise is expected to comprise of, but not limited to, a proposed private placement and proposed rights issue, which MRI will participate in, ” Brahim’s said.

The firm also eyes an exit from the PN17 status potentially by end of next year.

Subject to approvals of Bursa Malaysia and Brahim’s shareholders, the firm will be selling a ‘substantial’ stake to MR.

MRI is principally involved in the manufacturing of prepared meals and dishes, event/food catering and other food service activities.

In addition, MRI has paid a deposit of RM2mil to Brahim’s with the execution of the HOA, which may be used to set off against the total amount to be paid by MRI for the subscription of new securities in Brahims to be issued in conjunction with the proposed share issuance.

Source: TheStar