When entering into a transaction, a company listed on Bursa Malaysia Securities Berhad (“Bursa Malaysia”) may need to make announcement to Bursa Malaysia as provided under the Listing Requirements. In deciding whether any announcement is required, a company listed on Bursa Malaysia (“PLC”) needs to make the following assessment.

Quantitative assessment

Where any one of the percentage ratios of a transaction is 5% or more, a PLC must announce the transaction to Bursa Malaysia as soon as possible after terms of the transaction have been agreed unless the value of the consideration of the transaction is less than RM500,000 for a company listed on the Main Market or RM200,000 for a company listed on the ACE Market. Where the consideration for the transaction is satisfied wholly or partly in securities for which listing is being sought, the PLC must immediately announce the transaction, even if all the percentage ratios of a transaction are less than 5%.

For related party transactions, where any one of the percentage ratios of a related party transaction is 0.25% or more, a PLC must announce the related party transaction to Bursa Malaysia as soon as possible after terms of the transaction have been agreed. No announcement is required if the value of the transaction is less than RM500,000 for a company listed on the Main Market or RM200,000 for a company listed on the ACE Market, or it is a recurrent related party transaction.

Qualitative assessment

A PLC must make immediate public disclosure of any material information. Information is considered material, if it is expected to have a material effect on:

• the price, value or market activity of any of the PLC’s securities; or
• the decision of a holder of securities of the PLC or an investor in determining his choice of action.

Material information may include information which:

• concerns the PLC’s assets and liabilities, business, financial condition or prospects;
• relates to dealings with employees, suppliers, customers and others;
• relates to any event affecting the present or potential dilution of the rights or interests of the PLC’s securities; or
• relates to any event materially affecting the size of the public holding of its securities.

Paragraph 9.04 of the Main Market Listing Requirements and Rule 9.04 of the ACE Market Listing Requirements set out examples of events which require immediate disclosure.

The information in this article is intended only to provide general information and does not constitute any legal opinion or professional advice.