Perak Corporation Berhad Proposes Renewal of Shareholders’ Mandate for Recurrent Related Party Transactions

Date: 30 April 2026
Event: 35th Annual General Meeting (AGM) on 4 June 2026, Casuarina Convention Centre 1, Hotel Casuarina @ Meru, Ipoh, Perak.

Key Points of the Circular

• Proposal: Renewal of the existing shareholders’ mandate for recurrent related party transactions (RRPTs) of a revenue or trading nature, necessary for Perak Corporation Berhad (“Perak Corp”) Group’s day-to-day operations.
• Mandate Expiry: The existing mandate, approved at the 2025 AGM, will lapse at the conclusion of the 2026 AGM unless renewed.
• Purpose: The renewal enables Perak Corp and its subsidiaries to continue entering into RRPTs without convening separate general meetings for every transaction, thereby improving operational efficiency and reducing costs.
• Classes of Related Parties: The principal related parties involved are Perbadanan Kemajuan Negeri Perak (PKNPk), Pelabuhan Lumut Sdn Bhd (PLSB), and Lekir Bulk Terminal Sdn Bhd (LBTSB). Key subsidiaries involved include Lumut Maritime Terminal Sdn Bhd (LMTSB) and PCB Taipan Sdn Bhd (PCBT).
• Nature of Transactions: Major transactions include operation and maintenance contracts between LMTSB and LBTSB, and rental of office space from PCBT to PKNPk.
• Estimated Values: Operation and maintenance contracts are estimated at RM51 million (actual value transacted as of LPD: RM44.44 million); rental transactions are estimated at RM2 million (actual value transacted: RM1.51 million).

Important Information for Shareholders

• Potential Price-Sensitive Issues:
  • Major Related Party Transactions: The RRPTs involve substantial values, particularly the RM51 million operation and maintenance contract, which forms a significant part of Perak Corp’s revenue base.
  • Outstanding Receivables: As at end-2025, trade receivables from related parties are significant—LBTSB owes over RM12.7 million (mostly less than one year overdue), and PKNPk owes RM422,878. No late payment charges have been imposed, but management continues to pursue timely settlement.
  • Review & Safeguards: Strict internal reviews and audit committee oversight are in place to ensure these transactions are on arm’s length terms and not detrimental to minority shareholders. Transactions are reviewed for fair pricing, with external quotations or internal estimates where necessary.
  • Directors’ and Major Shareholder Interests: PKNPk, as a major shareholder (52.27%), and its nominee director, Datuk Redza Rafiq bin Abdul Razak, are interested parties and will abstain from voting and Board deliberations regarding the mandate, ensuring governance and transparency.
  • Validity: If approved, the mandate is valid until the next AGM or until revoked by shareholders.
  • Material Contracts & Developments: The circular details several material contracts and joint ventures entered over the past two years, including:
    • Land development and joint ventures with Tg Malim Hi-Tech Park Sdn Bhd, Makmur Impian Property Sdn Bhd, Uni-Poh Construction Works Sdn Bhd, Urbax Properties Sdn Bhd, and Spectrum Asets Sdn Bhd.
    • Disposals of land parcels for total considerations ranging from RM8.53 million to RM49.5 million, and collaboration agreements for solar farm and smart water meter projects.
  • Financial Impact: The mandate’s renewal is not expected to have a material effect on the Group’s earnings per share or net assets per share, nor will it affect the share capital or substantial shareholders’ shareholdings. However, the continued flow of RRPTs supports recurring revenue streams.
  • No Material Litigation: As of the LPD, there are no material litigations, claims, or arbitrations that may affect the Group’s financial position.
• Action Required: Shareholders are advised to review the circular in detail and vote on the resolution at the upcoming AGM. Interested parties and those connected to them will abstain from voting.

Potential Share Price Impact

The renewal of the RRPT mandate is significant for Perak Corp’s operational continuity and revenue stability. Any disruption in major related party transactions, particularly the high-value contracts with LBTSB and PKNPk, could materially impact revenue and cash flows. The transparency in governance and the scale of RRPTs mean that investor attention to the AGM outcome is warranted, as a rejection or significant alteration of the mandate could affect the valuation and market perception of Perak Corp.

Conclusion

The proposed renewal of the shareholders’ mandate for RRPTs is a routine yet crucial matter for the ongoing commercial stability of Perak Corp. Investors should monitor the AGM’s outcome closely given the size of the transactions and the involvement of key shareholders and directors, as well as the Group’s ongoing collaborations and land development projects which may influence future earnings streams.

Disclaimer: This article is prepared for informational purposes only and does not constitute investment advice. Investors are advised to review the full circular and consult their professional advisers before making any investment decisions. The information herein is based on the latest available circular and may be subject to change.

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