KUALA LUMPUR (Jan 26): Nylex (Malaysia) Bhd, which has been unable to submit a regularisation plan to address its Practice Note 17 (PN17) status by the extended deadline of Friday, said it is submitting an appeal against Bursa Securities' decision to suspend and delist its shares.

The company risks suspension over the failure to submit the regularisation plan by the deadline, followed by delisting upon the expiry of two market days from the suspension date.

In a bourse filing, Nylex said it is submitting the appeal on Friday, and subject to the appeal being considered favourably by Bursa Securities, it will seek a further extension of time to submit the regularisation plan.

The company also announced that it had on Tuesday appointed Maybank Investment Bank (Maybank IB) as its principal adviser for the submission of the regularisation plan.

Bursa Securities had in October last year given Nylex until Friday to submit the regularisation plan.

The company was classified as a PN17 company upon turning into a Main Market-listed shell after divesting all its assets and liabilities to its parent Ancom Nylex Bhd, then known as Ancom Bhd, for RM179.3 million in a cash-plus-share deal in January 2022.

Nylex was then granted 12 months to submit a regularisation plan. In January 2023, the company secured a six-month extension up to July 26, 2023 for the submission, before the subsequent extension in October.

Nylex managing director Datuk Siew Ka Wei held a 0.57% direct stake in the company as at Dec 28, and another 42.36% interest via Ancom Nylex and Rhodemark Development Sdn Bhd.

In Ancom Nylex, Siew has a 13.9% direct stake and 3.4% indirect shareholding, and he sits in the boardroom as executive vice chairman.

Nylex had in March 2022 entered into a heads of agreement (HOA) with Sinar Bina Infra Sdn Bhd, LBS Bina Group Bhd, BTS Group Holdings PCL and Ancom Nylex to to jointly build and operate a light rail transport system in Johor Bahru, with an integrated property development using the transit-oriented development concept.

The project is subject to the ongoing feasibility study and the grant of the concession award by Johor state government.

In March 2023, the parties began making extensions to the long stop date of the HOA. A third extension was agreed upon on Jan 23 this year, pushing back the long stop date to end-July 2024.

Nylex said in its annual report that the project is part of the proposed regularisation plan, and its future prospects will depend substantially on the awarding and successful completion of the project going forward.

Shares of Nylex closed half sen or 1.5% lower at 32 sen on Friday, giving the company a market capitalisation of RM62.19 million.

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