Bursa serves show cause notice on delisting of MSports

PETALING JAYA: Bursa Malaysia Securities Bhd has served a show cause notice on the delisting of China-based shoe manufacturer Multi Sports Holdings Ltd (MSports) from Bursa Malaysia.

This comes on the heels of MSports’ application for a further time extension dated June 29 being rejected by the regulator.

According to a Bursa announcement yesterday, MSports had failed to announce two quarterly reports for the periods ended June 30 and Sept 30, 2016, as well as an annual report for the financial year ended Dec 31, 2015.

These outstanding financial statements exceeded six months from the stipulated timeframe as set out in the Bursa Securities Main Market listing requirements.

“Pursuant to paragraph 9.28(6) of Bursa Securities Main Market listing requirements, if a listed issuer fails to issue the outstanding financial statements within six months from the expiry of the relevant timeframes, in addition to any enforcement action that Bursa Securities may take, Bursa Securities shall commence delisting procedures against such listed issuer,” it said.

Prior to the application for a further time extension, MSports in an earlier announcement had said that it expected to issue the outstanding financial statements to Bursa on or before June 30, 2017.

MSports must make written representations supported by documentary evidence, if any, to Bursa Securities within five market days from yesterday’s notice, or July 10, as to why the securities of the company should not be delisted.

In the event of a delisting, the securities of the company will be removed from the official list of Bursa Securities upon the expiry of seven market days from the date of notification of the decision to delist or other dates as may be specified, unless an appeal has been made within the prescribed timeframe.

Should Bursa Securities decide not to delist MSports, other appropriate action or penalties may be imposed.

Trading in MSports shares has been suspended since May 2016 due to the failure to issue the 2015 annual report.