Kenyataan Media
BURSA MALAYSIA REPRIMANDS FABER GROUP FOR BREACH OF MAIN MARKET LISTING REQUIREMENTS
Bursa Malaysia Securities Berhad (“Bursa Securities”) has publicly reprimanded Faber Group Berhad (“FABER”) for failing to immediately announce the non-renewal of contracts awarded to the company’s subsidiary, Faber Limited Liability Company, by the Department of Municipal Affairs, Western Region Municipality, Emirate of Abu Dhabi (“WRM”) as set out in the company’s announcement on 12 January 2011.
The failure to immediately announce the non-renewal of contracts breached paragraph 9.03(1) read together with paragraph 9.04(b) of the Main Market LR where a listed issuer must make immediate public disclosure of any material loss of a contract.
While Bursa Securities has not found any of the directors to have caused or permitted the breach, Bursa Securities wishes to highlight that it is the responsibility of directors to maintain appropriate standards of responsibility and accountability. The Board of Directors at the material time is as follows:
- Dato’ Ikmal Hijaz bin Hashim
- Datuk Zainal Abidin bin Alias
- Datuk Mohamed Zain bin Mohamed Yusuf
- Elakumari a/p Kantilal
- Oh Kim Sun
- Puasa bin Osman
- Annuar Marzuki bin Abdul Aziz
- Adnan bin Mohammad
- Dato’ Mohd Izzadin bin Idris
- Suhaimi bin Halim
Bursa Securities views the contravention seriously and reminds FABER and its Board of Directors of their obligation to uphold appropriate standards of responsibility and accountability to shareholders and the investing public.
BACKGROUND
FABER was informed of the non-renewal of contracts on 10 January 2011 but only made the announcement on 12 January 2011, a delay of two market days. There was material price and volume movement of the company’s securities upon announcement of the non-renewal.
The contracts had contributed approximately 14% and 23% of FABER’s revenue and approximately 29% and 37% of FABER’s profit after tax and minority interest for the financial years ended 2009 and 2010, respectively.
It is unacceptable for FABER to temporarily refrain from publicly disclosing the non-renewal of contracts on the premise that the company was taking immediate steps to ascertain the reasons for the non-renewal and to further negotiate with WRM.