Bursa Securities has publicly reprimanded the IT group and five directors for breaches of listing requirements over its reply to an UMA query on its Covid-19 screening contracts in March 2021.
The five directors, who were also fined RM100,000 each, are non-independent and non-executive chairman Rizal Jaafar, managing director Mohamad Sabir Sabri, and independent and non-executive directors Abdul Aziz Ishak, Nor Adha Yahya and Ong Kuan Wah.
In response to the UMA query on March 1, 2021, Dataprep stated it was “unaware” of any corporate development relating to its business and affairs, including those in the stage of negotiations or discussions, that had not been previously announced which might account for the UMA.
In a statement today, Bursa Securities said Dataprep’s UMA response was “not factual, inaccurate and did not contain sufficient information” for investors to make informed investment decisions.
It said Dataprep had denied knowledge of the negotiations on the proposed acquisitions of certain companies to undertake contracts to provide an integrated solution for Covid-19 screening to the health ministry, although the acquisitions had been approved in principle by the board on Feb 17, 2021.
About two weeks after the UMA response, Dataprep announced a memorandum of collaboration to undertake the proposed Covid-19 screening contracts on March 12, 2021 and the proposed acquisitions on March 15, 2021, said the exchange regulator.
“Bursa Securities views the breach seriously as the requirement to ensure timely and accurate disclosure of material information is fundamental to ensure the investors and public are kept fully informed of and have equal access to all material information to facilitate informed investment decisions.
“This is critical towards building and maintaining corporate credibility, market integrity and investor confidence,” it added.
Dataprep was the first Malaysian IT company to be listed on the then Kuala Lumpur Stock Exchange (now Bursa Malaysia) in 1991.
The counter closed unchanged at 16 sen today, giving the group a market capitalisation of RM114.6 million.