KUALA LUMPUR: Financially troubled Perak Corporation Bhd and Advancecon Holdings Bhd's share price were both opened higher on news that the two would work together to develop the RM1.03 billion Silver Valley Technology Park (SVTP) in Perak.
As at 9.32am, Perak Corp was up 1.72 per cent to 29.5 sen, while Advancecon was unchanged at 42 sen.
Perak Corp, which is currently classified as a Practice Note (PN) 17 company, is 51 per cent owned by Perbadanan Kemajuan Negeri Perak (PKNP), the Perak state agency in charge of economic development and socio-economic growth for the state.
In a filing with Bursa Malaysia Securities Malaysia Bhd yesterday, Perak Corp said it has appointed Advancecon unit Advancecon Development Sdn Bhd (ADSB) as the joint venture partner for the development of the main infrastructure for the (SVTP) industrial hub and sale of completed industrial lots with main infrastructure on thirty-nine pieces of leasehold lands measuring 798.24 acres all located in Hulu Kinta, Perak.
The proposed joint development is for a five-year period and subject to Perak Corp shareholders' approval and also Bursa Malaysia Securities' approval of its regularisation plan.
It is also subject to a written undertaking from PKNP, the registered and beneficial owner of the land and the holding corporation of Perak Corp.
"As Perak Corp is classified as an affected listed issuer under PN 17, the proposed joint development provides an avenue for the company to raise funds to channel towards the group's business operations which will improve the group's overall cash flow position as well as strengthening its financial position as part of its regularisation effort.
The proposed joint development is part of the measure to raise the necessary cash required for the group's business regularisation plans, which are still in the midst of being finalised as at the date of this announcement," Perak Corp said in its fiing with Bursa Malaysia Securities.
Perak Corp plans to make the requisite announcement for its proposed regularisation plan in the fourth quarter of 2023 (4Q23).
The company has until Feb 10, 2024 to submit its regularisation plan.
Additionally, Perak Corp said the company and Advancecon shall be entitled to a revenue share on a 35 per cent and 65 per cent basis of the net development value.
ADSB has obtained the financing facility for the proposed joint development.