Zitong Financial App NewsletterRIMBACO (01953)In an announcement, the company was informed by the Malaysia Construction Industry Development Commission on 15 September 2021 that in order to renew the Rimbaco license which expired on 16 September 2021, Rimbaco must be registered as a foreign contractor because RBC, the direct holding company of Rimbaco, is a foreign company incorporated in the British Virgin Islands or its shares must be transferred to a company incorporated in Malaysia to continue as a local contractor. In order to renew its licence as a local contractor, the Group has undergone internal restructuring.

As part of the restructuring, RBC, a limited company incorporated in the British Virgin Islands and a direct wholly-owned subsidiary of the company, acquired Jade Forte from a secretarial service provider for a consideration of 2.00 ringgit. As at 6 October 2021, the entire issued and paid-up share capital of Rimbaco was consolidated into 8 shares. On October 7th, 2021, under the share subscription agreement entered into between Rimbaco and Jade Forte, Jade Forte subscribed and allotted and issued 8000 new shares of Rimbaco for a nominal consideration of RM8.00, followed by Jade Forte and RBC holding 99.9 per cent and 0.1 per cent direct and indirect interests in Rimbaco, respectively.

Immediately following the completion of the reorganization, Rimbaco applied to CIDB for renewal of its licence on October 14, 2021. CIDB will normally approve the renewal of the licence within 14 working days. The Board expects that the reorganization and renewal of the licence will not have any material adverse impact on the Group's business operation and financial position.