Bursa Malaysia has approved Perak Corp Bhd’s proposed regularisation plan, clearing the path for the PN17-listed company to proceed with a multi-part restructuring aimed at restoring financial stability and lifting its financially distressed status.
The approval is subject to standard conditions, including compliance with Bursa listing requirements, obtaining all necessary regulatory approvals, securing shareholder consent at a general meeting, and incorporating any required comments into the shareholder circular, Perak Corp said in a filing.
First outlined in February 2025, the regularisation plan involves a combination of capital reduction, joint development projects, land sales, entitlement receipts, and preference share issuance to restructure outstanding debts.
The capital reduction will cancel RM185 million of the company’s RM272.77 million share capital to offset accumulated losses of RM177.35 million as of September 2024.
Perak Corp also entered into a joint venture with major shareholder Perak State Development Corp (PKNP) in January 2025 to co-develop the Silver Valley Technology Park Industrial Hub in Hulu Kinta.
The plan includes land disposals of 424.7 acres in Bernam Timor for RM89.6 million, with 73.14 acres sold to Makmur Impian Property Sdn Bhd for RM21.13 million and 351.56 acres to Tanjung Malim Hi-Tech Park Sdn Bhd for RM68.44 million. In addition, the company is entitled to RM40.38 million via a supplemental agreement with PKNP and Uni-Poh Construction Works Sdn Bhd for the development of 56.3 acres of land in Teluk Dalam.
To settle debts under a court-approved scheme of arrangement, Perak Corp will issue up to 39.73 million redeemable preference shares series B (RPS-B) at RM1 each to unsecured scheme creditors. The RPS-B carries a five-year tenure, a 2% preferential dividend, and is non-convertible. Outstanding debts not covered by the issuance will be fully waived, representing a RM357.6 million reduction against the company’s RM379.34 million verified debt.
Perak Corp had previously issued two other preference share series — 20.9 million RPS-A1 and 14.91 million RPS-A2 — in January 2022 to CIMB Bank Bhd and Affin Islamic Bank Bhd as part of earlier debt-settlement arrangements.
Proceeds of RM129.95 million from land sales and settlement entitlements will be used to redeem existing preference shares, fund sewerage treatment works at Bandar Meru Raya, and support working capital needs.
Shares in Perak Corp were untraded on Monday. The counter last closed at 70 sen, giving it a market capitalisation of RM70 million.
