MMM Group faces suspension, delisting after Bursa rejects PN17 plan
In a filing to Bursa Malaysia, MMM said the exchange regulator was not satisfied that the plan met the requirements under Paragraphs 5.4 and 5.5 of Practice Note 17 (PN17), which apply to companies in financial distress.
Bursa also flagged several red signals, including a continued decline in revenue for financial year ended March 31, 2024 (FY24) and FY25, despite growth in Malaysia's out-of-home advertising industry.
It also raised concerns about the company's profitability, noting that recent profits were largely driven by fair value gains from future projections tied to a collaboration with Setia Media Sdn Bhd, rather than core business operations.
Excluding such gains, MMM would have posted losses in both FY24 and FY25. The group also recorded negative operating cash flow of RM3.05 million as at March 31, and its remaining order book stood at RM4.7 million as at end-May.
Bursa further noted that the company's proposed capital reduction, which would eliminate its accumulated losses, did not reflect genuine profitability.
"The improved shareholders' equity was due to the capital reduction, not profits from business activities," it said.
Following the rejection, MMM announced that trading in its securities will be suspended from Aug 7. The company faces delisting on Sept 4, 2025 unless it files an appeal by Aug 29.
If MMM submits an appeal within the timeframe, the delisting will be put on hold pending a decision. Bursa clarified that trading will still be suspended on Aug 7, regardless of whether an appeal is pending.
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