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MUI clarifies Metrojaya Bhd continues operating as usual

JUN 01, 2020, The Edge Markets
Andrew Khoo

KUALA LUMPUR (June 1): Malayan United Industries Bhd (MUI) clarified today that its 98.21%-owned subsidiary Metrojaya Bhd continues to operate its retailing business as usual through various subsidiaries including MJ Department Stores Sdn Bhd's outlets and EIC Clothing Sdn Bhd’s East India Company specialty store.

MUI said in a Bursa Malaysia filing dated May 31 that the diversified group understood that there had been some confusion over the news of the winding-up of Metrojaya Department Stores Sdn Bhd (MDS) and East India Company Clothing (Malaysia) Sdn Bhd (EIC), which are dormant subsidiaries of Metrojaya Bhd.

"The company (MUI) wishes to advise that Metrojaya Bhd continues to operate its retailing business as usual through various subsidiaries including its Metrojaya department stores under MJ Department Stores and its East India Company specialty store under EIC Clothing. These are separate entities from MDS and EIC.

"This announcement is made to clarify the company’s announcement to Bursa on 29 May 2020 regarding the above matter (MDS and EIC winding-up). As stated in the announcement of 29 May 2020, MDS and EIC are dormant companies and that the winding-up is to simplify the structure of the MUI Group, reduce costs associated with maintaining them and has no financial or operational effect on the MUI Group," MUI said in yesterday's filling, which seems to have only appeared on Bursa’s website today.

Last Friday, MUI said MDS and EIC, which are wholly-owned subsidiaries of Metrojaya Bhd, at their respective extraordinary general meetings last Wednesday obtained approval from the sole shareholder to commence members’ voluntary winding-up.

MUI said the winding-up of the subsidiaries is part of MUI's continuing rationalisation effort to simplify the structure of the group.

"In addition, the winding-up will enable the MUI Group to save future costs associated with maintaining these subsidiaries. The winding-up will not have any material financial or operational effect on the MUI Group for the current financial year ending 30 June 2020.

"Mr Chong Mun Yew has been appointed as the liquidator for the above winding-up,” MUI said.

MUI said MDS and EIC were incorporated on April 5, 1993 and Feb 15, 1995 respectively.

According to MUI’s website, the group’s core businesses comprise retailing, hotels, food and confectionery besides financial services and property development.

At Bursa today, MUI shares traded unchanged at 15.5 sen at 11.36am for a market capitalisation of about RM454 million. The stock saw 1.84 million shares traded.