Premier Nalfin: Revamp is on, even without Kidex

KUALA LUMPUR: Premier Nalfin Bhd, a Practice Note 16 (PN16) company, is confident of meeting the deadline to submit its regularisation plan to the authorities by June 30 after changes are made due to the cancellation of the Kinrara-Damansara Expressway (Kidex).
"It's still the same company (for the reverse takeover), (but) without Kidex," its chairman Tan Sri K.R. Somasundram told reporters when asked of the corporate exercise status after the company's AGM here yesterday.
The initial restructuring plan, which involved the reverse takeover of Premier Nalfin by Emrail Sdn Bhd, was to see an injection of RM2.42 billion Kidex into Premier Nalfin apart from Emrail's existing assets.
However, as the Selangor government has cancelled Kidex, Premier Nalfin has to make some changes to its revamp scheme. The cancellation was due to the concessionaire's failure to comply with three conditions set by the February 14 deadline, which include an independent Traffic Impact Assessment, Social Impact Assessment and Environmental Impact Assessment to prove that the project was beneficial to residents.
On March 23, Premier Nalfin was given a four-month extension by Bursa Malaysia until June 30 to submit its regularisation plan.
Hong Leong Investment Bank is the adviser for Premier Nalfin's restructuring plan.
According to Hong Leong Investment Bank's senior vice president of client relationship Hui Weng Yan who was present at the AGM, Premier Nalfin is in the midst of ironing out the revamp details and will be submitted to the authorities before June 30.
"We'll go ahead and sort out things with Kidex, we don't want to get involved in that (Kidex)," he said.
Even without Kidex, he stressed that the restructuring plan is still viable as Kidex Sdn Bhd is just a concessionaire without any works at hand.
"Emrail on a standalone basis is a contractor with quite a fabulous track record…Even we got Kidex, it's more for the longer term rather than immediate income because it takes two to three years to construct and the toll road takes a while before the traffic builds up," he said.
Emrail is involved in railway engineering, systems and signalling for railways, civil works related to railways and maintenance and engineering works.
Hui added that the valuation for the reverse take over deal will be lower than the initial RM669.87 million after pulling out Kidex.
Premier Nalfin has been a PN16 company since July 2011 following the disposal of its entire stake in three palm oil companies which are involved in the downstream operation.