Integrated Annual Report 2024 SECTION 6 • FINANCIAL STATEMENTS 333 Notes to the Financial Statements 34. SIGNIFICANT EVENTS (CONT’D) 34.2 Fire incident In September 2024, a fire incident occurred at the Phase 3 smelter plant of Press Metal Bintulu Sdn. Bhd. (“PM Bintulu”) which is 80%-owned by the Group. The incident resulted in damages to plant and machineries with net book value of approximately RM129,748,000. These plant and machineries were subsequently being written off. The subsidiary was unable to operate the Phase 3 smelter plant for the next few months for repair works, resulting to approximately 3% of the Group’s total smelting capacity being affected. PM Bintulu subsequently made a claim to its insurer for the replacement costs of the damaged plant and machineries for up to a total of RM150,000,000. As at the end of the current financial year, the insurer has acknowledged and paid an interim claim of RM50,000,000 and RM36,710,000 respectively. The final claim is still being assessed by the insurers, of which no payment has been received as of to date. 35. SUBSEQUENT EVENT 35.1 Memorandum of understanding (“MOU”) with Bintulu Development Authority (“BDA”) Subsequent to the reporting period, in February 2025, the Group had entered into a MOU with BDA for a proposed joint venture related to a solar frame extrusion facility with an annual production capacity of 80,000 tons, to be located in Samalaju Industrial Park, Bintulu. Under the terms of the MOU, which is valid for three years, a special purpose vehicle will be formed with BDA holding a 20% stake and the Group holding the remaining 80% stake. The total estimated investment for the project is RM600 million, comprising a 20% capital injection in proportion to the parties’ shareholdings and 80% external financing. Operations are expected to commence by mid-2026, subject to regulatory approvals and final agreements. 35.2 Fifth issuance of Sukuk Wakalah under the Sukuk Programme On 19 March 2025, the company made its fifth issuance of the Sukuk Programme for an aggregate nominal value of RM1.5 billion with tenures of 7 years , 10 years and 15 years repayable as follows:- - RM350 million due in 2032 - RM700 million due in 2035 - RM450 million due in 2040 35.3 Listing of associated company, Nanshan Aluminum International Holdings Limited (“NAIHL”) On 17 March 2025, NAIHL has successfully issued and published its prospectus (“Prospectus”) on the website of The Stock Exchange of Hong Kong Limited (“HKSE”). NAIHL shares are offered for subscription and trading on the Main Board of the Hong Kong Stock Exchange under the stock code 2610 commencing from 25 March 2025. Immediately following the completion of the global offering of NAIHL shares, the Company will, through Press Metal International Resources (HK) Limited (“PMIRHK”), hold 21.75% of the issued share capital of NAIHL (assuming the Over-allotment Option (as defined in the Prospectus) is not exercised and without taking into account any shares to be issued upon exercise of any options that may be granted under the Share Option Scheme (as defined in the Prospectus)).
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