Bursa M’sia delists 192 companies from 2005

Bursa M’sia delists 192 companies from 2005
Posted on October 13, 2010, Wednesday

KUALA LUMPUR: A total of 192 public companies have been delisted from Bursa Malaysia from 2005 till end of August this year, the Dewan Rakyat was informed.

Deputy Finance Minister, Datuk Dr Awang Adek Hussein, said a total of 203 public companies were also listed on the stock exchange during the same period.

He said 74 companies or 38 per cent of the 192 companies were delisted following privatisation process.

“Out of the 74 companies, 50 were off the list after take over offer and scheme arrangement, 12 following scheme payment and reduction in selected capital in line with the Companies Act. Another three companies were delisted following the sale of assets resulting from a merger where the assets had been transferred while another nine companies opted for voluntary delisting,” he said.

The minister said this when replying to a question from William Leong Jee Keen (PKR-Selayang) at the Dewan Rakyat sitting here.

Leong wanted to know the number of public companies listed on Bursa Malaysia through an initial public offer (IPO) and the number of companies that took private from 2005 till 2010 and the reasons behind the move.

Awang Adek said there were many other reasons for a company to seek delisting including the wish of the main shareholder to expand the company’s business direction without any obstruction from other shareholders.

A low share price that is not reflective of the actual asset value of the said share is another reason.

“It happens also when the company sells its assets and has no core business activity and both the main shareholder and the company’s management have no plans to start on a new core business,” he said.

Awang Adek also said that there had been a 15 per cent increase in the stock exchange’s Composite Index, rising from 1,272 points last year to 1,484 points todate.

“A rise of 15 per cent within a year is a good achievement. With the impending listing of several new companies including two subsidiary companies of Petronas on the local bourse, it should provide for some new activity and inspiration in the market,” he added. — Bernama