Shareholders block RPT at ailing Perisai Petroleum

TheEdge Fri, Nov 30, 2018 10:29am - 5 years View Original


KUALA LUMPUR: Perisai Petroleum Teknologi Bhd’s shareholders have declined to give a mandate on the company’s related party transactions (RPT) in which its managing director Datuk Zainol Izzet Mohamed Ishak and controlling shareholder Ezra Holdings Ltd are involved, at the annual general meeting (AGM) yesterday.

The Practice Note 17 (PN17) company announced to Bursa Malaysia yesterday that all the resolutions were carried at the AGM except for Ordinary Resolution 6 on the Proposed Renewal of Shareholders’ Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature.

“The Perisai board would like to inform that it will seek legal advice on the above and further announcement will be made to Bursa Malaysia in due course,” read the filing with Bursa Malaysia.

The said resolution refers to the proposed renewal of shareholders’ mandate for recurrent RPT of a revenue or trading nature, which was set out in an announcement on Oct 26.

This includes Intan Offshore Group’s monthly receipt of income of RM4.1 million for bareboat charter of vessels to Emas Offshore (M) Sdn Bhd.

Intan Offshore is 51%-owned by Perisai while Emas Offshore is linked to Perisai’s largest shareholder Ezra Holdings Ltd, which owns 22.32% stake in the group through Emas Offshore Ltd and HCM Logistics Ltd as at end-September.

In addition to that, Perisai will be paying agency fees of RM540,000 per month in aggregate to three agents — Larizz Petroleum Services Sdn Bhd (LPS), Larizz Energy Services Sdn Bhd (LES), and Perisai Offshore Sdn Bhd (POSB).

LPS is a 40% associate company of Perisai, while LES and POSB are 51%-owned units of Perisai.

Zainol owns all remaining shares in the agencies.

Perisai had earlier explained that agency fee as the consideration for the services rendered by the related party which include the use of its Petronas licence, render support, business development, market intelligence and contract management.

Perisai’s management declined to speak to The Edge Financial Daily after its AGM.

Perisai has been loss-making for three straight years since its financial year ended Dec 31, 2015 and continues to bleed.

Yesterday, the group announced registering a net loss of RM19.88 million for the first quarter of its financial year ending June 30, 2019, against a revenue of RM32.35 million.

The financially-troubled firm triggered the PN17 status in October 2016, after its wholly-owned subsidiary, Perisai Capital (L) Inc, defaulted in payment of the principal and interest for S$125 million multi-currency medium-term notes.

As at end-September, the group’s total borrowings stood at RM1.254 billion and accumulated losses of RM1.43 billion.

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