PETALING JAYA – Federal Land Consolidation and Rehabilitation Authority’s (Felcra) expression of interest in Practice Note 17 company Kuantan Flour Mills Bhd (KFMB), which made its share price jump more than three fold, was doused less than 24 hours later in a bizarre twist of events.
On Wednesday, KFMB’s shares hit 25 sen from Tuesday’s closing of 8 sen, after the news of Felcra’s interest came out. Trading in the stock was suspended yesterday.
In a brief announcement to Bursa Malaysia, Felcra, the potential white knight which had stated its interest in a reverse takeover of KFMB, bowed out of deliberations without much ado.
“After urgent deliberation of our register of interest to explore the possibility of participating in KFMB’s equity, we hereby inform that, effective immediately, we are retracting our register of interest and ceasing all exploratory pursuit to participate in KFMB equity. As such, our letter dated Dec, 9 2016 to KFMB shall no longer be of any effect,” Felcra said in the filing with Bursa Malaysia.
It is not known what made Felcra end its deliberations abruptly.
KFMB said the company, which needs to offer up a regularisation plan to Bursa Malaysia by end of December, will continue its utmost effort to explore other opportunities and investment participation by other parties to restructure and revitalise the company.
On Wednesday, the group had said that it is seeking the approval of Bursa Malaysia Securities for an extension of six months period to submit its turnaround plan.