Business

Saturday June 6, 2009

Transmile queried over unusual market activity


PETALING JAYA: Transmile Group Bhd’s shares were suspended from trading yesterday afternoon after the company responded to a query from Bursa Malaysia on a 34.1% surge in its share price in the morning trading session.

In its reply to Bursa Malaysia’s query, the company said it was not aware of any corporate development, rumour or report that had contributed to the sharp hike in its share price yesterday.

Transmile shares rose 31.5 sen to RM1.24 yesterday.

Transmile is involved in air transportation services and is currently finalising the restructuring of supplemental loan agreements for its total debts of about RM568.7mil. The losses were revealed after an accounting scandal involving the company broke out in 2007.

In a separate filing, the company announced it obtained approval from shareholders at its AGM for wholly-owned subsidiary Transmile Air Services Sdn Bhd (TAS) to continue doing business with Pos Malaysia Bhd, its major shareholder.

The company said the agreement was entered in the ordinary course of business on normal commercial terms.

“The recurrent related party transactions entered into by TAS are in the ordinary course of business, made on an arm’s length basis and on normal commercial terms that are not more favourable to the related party than those generally available to the public and are not detrimental to the minority shareholders,’’ the company said in a statement yesterday.

It is not expected to have any material effect on the net asset per share and earnings per share of the group.

The total value of the recurrent transactions through the arrangements amounted to RM57.9mil.

During the period of April 1, 2008 to May 28, 2009, TAS had an agreement with Pos Malaysia whereby TAS will provide and operate air services to Pos Malaysia.


TRANMIL : [Stock Watch] [News]

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