CAB Cakaran Corporation Berhad Issues Errata to Shareholders’ Mandate Circular: Key Updates for Investors

Date: 9 March 2026

Overview

CAB Cakaran Corporation Berhad (“CABC”) has released an errata to its Circular to Shareholders dated 29 January 2026. The errata relates to the proposed renewal and new shareholders’ mandates for recurrent related party transactions (“RRPTs”) of a revenue or trading nature. This update is essential for shareholders as it amends key transaction details that could impact company operations and potentially influence share value.

Key Points in the Report

• Errata Announcement: Amendments have been made to the sections of the original Circular concerning the estimated and actual transaction values for recurrent related party transactions involving significant directors and major shareholders.
• Proposed Mandate Renewal and New Mandate: The mandates involve transactions with parties related to key directors and major shareholders, specifically the purchase of feeds and farming equipment, and the sale of equipment and appliances.
• Potential Price Sensitivity: The updated values for these related party transactions are substantial, potentially affecting the company’s revenue, cost structure, and perception of governance risk.

Detailed Amendments to Related Party Transactions

1. Transactions with Khor Yu Beng (“KYB”) and Affiliates

• Nature of Transaction: Purchase of feeds from KYB.
• Estimated Value (Mandate from 2025 AGM): RM25 million (OTK & NMS).
• Actual Value Transacted (24 March 2025 up to the latest practicable date): RM11.286 million (OTK & NMS).
• Estimated Value for Upcoming Mandate (2026-2027): RM25 million (OTK & NMS).
• Related Parties: KYB is an Interested Director and Major Shareholder. He holds 55% in OTK, a CABC subsidiary, and is a Director and Major Shareholder of NMS and DS Poultry.
• Shareholder Impact: Recurrent purchases from KYB and affiliated entities represent significant related party exposure, which could raise governance and conflict-of-interest concerns among investors. The repeat of a high mandate value (RM25 million) signals ongoing dependence on related party supplies, which could impact costs and margins if pricing is not competitive.

2. Transactions with Ong Chuan Seng (“OCS”) and Affiliates

• Nature of Transactions:
  • Purchase of farming equipment from OCS.
  • Sales of farming equipment, evaporative cooling pads, and electrical appliances (including installation works) to OCS.
• Purchase from OCS:
  • Estimated Value from 2025 Mandate: RM5 million (OTK & OTO).
  • Actual Value Transacted: RM3.644 million (OTK & OTO).
  • Estimated Value for 2026-2027 Mandate: RM10 million (OTK & OTO).
• Sales to OCS:
  • Estimated Value from 2025 Mandate: RM5 million (OTK & OTO).
  • Actual Value Transacted: RM522,000 (OTK & OTO).
  • Estimated Value for 2026-2027 Mandate: RM10 million (OTK & OTO).
• Related Parties: OCS is an Interested Director and Major Shareholder of OTK (subsidiary of CABC) and OTO.
• Shareholder Impact: The significant increase in the estimated transaction value for both purchases and sales (from RM5 million to RM10 million for each direction) signals either expanded operations or higher dependence on related parties. This doubling of mandate value is noteworthy and could affect investor perception regarding business independence and potential risks of overreliance on connected parties.

Other Important Notes for Shareholders

• All other information in the original Circular remains unchanged.
• The company has expressed regret for any inconvenience caused by the amendments.

Why This Matters to Investors

These amendments are significant because they:

• Update the actual and projected values of material related party transactions, which could impact company revenue, cost structure, and governance perception.
• Reflect a substantial increase in mandate values for transactions with key related parties, particularly for purchases and sales involving OCS-affiliated entities.
• Highlight ongoing and growing reliance on related parties, which could influence investor confidence, especially regarding governance, transparency, and potential conflicts of interest.
• Could affect share price if investors interpret this as either a risk or a growth opportunity, depending on the underlying business rationale.

Conclusion

Shareholders and potential investors should closely monitor these developments, evaluate the rationale for the increasing mandates, and consider the implications for governance and operational independence. Any material changes in related party transactions and their magnitude are always closely watched by the market, as they can directly affect valuation and confidence in management practices.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult with a qualified financial adviser before making any investment decisions.

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