Parlo Berhad Seeks Shareholders’ Approval for Renewal of Mandate on Recurrent Related Party Transactions (RRPT)

Date: 30 April 2026

Company: Parlo Berhad

AGM Date: 19 June 2026

Key Highlights

• Renewal of Shareholders’ Mandate: Parlo Berhad is seeking shareholder approval at its upcoming 28th Annual General Meeting (AGM) for the renewal of its mandate to enter into recurrent related party transactions (RRPT) of a revenue and/or trading nature. This mandate is crucial for the company’s day-to-day operations and is subject to annual renewal.
• Scope of Transactions: The RRPT primarily involve the sale and/or purchase of medical furniture, medical devices, healthcare equipment, and pharmaceutical products between Parlo Group and LKL Group, a major shareholder and related party.
• Price Sensitivity: The estimated aggregate value of these transactions for the coming mandate period is substantial—up to RM10 million each for sales and purchases, though actual values may vary. For the previous period, the actual value of purchases transacted was RM214,864, with sales yet to be transacted.
• Interested Parties: LKL Advance Metaltech Sdn. Bhd. (LKLAM) is a direct major shareholder of Parlo (holding 14.84%), while LKL International Berhad (LKL) is an indirect major shareholder. Two directors of Parlo, Mr. Ti Lian Seng and Mr. Ng Fun Kim, are also directors of LKL, directly linking management interests between the companies.
• Corporate Governance and Safeguards: Robust internal controls and review processes are in place to ensure RRPT are conducted at arm’s length, on normal commercial terms, and are not detrimental to minority shareholders. The Audit and Risk Management Committee oversees these processes and will review them annually.
• Shareholder Protections: Interested directors and major shareholders, along with persons connected to them, will abstain from voting on the resolution to avoid conflicts of interest.
• Potential Impact on Financials: While the Proposed Renewal is not expected to affect the company’s share capital or major shareholders’ shareholdings, it is anticipated to contribute positively to earnings and net assets during the validity period.
• Transparency: Full disclosure of the actual value and types of RRPT, as well as related parties involved, will be made in the company’s annual report for the relevant financial year.

Details Investors Must Note

• Mandate Validity: If approved, the renewed mandate will remain in effect until the next AGM, unless revoked or varied earlier. Approval for renewal will be sought at each subsequent AGM, subject to satisfactory review.
• Transaction Estimates: The company estimates transactions with LKL Group up to RM10 million for both sales and purchases during the mandate period. The Board notes that the actual transaction value may differ from estimates.
• Review Procedures: Transactions below RM1 million are reviewed by senior management and the Audit & Risk Management Committee quarterly. Transactions of RM1 million or more require Audit & Risk Management Committee and Board approval.
• Conflict of Interest Abstentions: Directors with interests in these transactions have abstained and will continue to abstain from all deliberations and voting related to RRPT at Board meetings and at the AGM.
• No Outstanding Sums or Litigation: As of the latest practicable date, there are no overdue sums from related parties, no material litigation, and no material commitments or contingent liabilities that could impact the Group’s financial position.

Why This May Be Price-Sensitive News

The potential aggregate value of RRPTs is significant (estimated up to RM20 million in total for the mandate period). Should these transactions materialize as forecast, they could positively influence Parlo Berhad’s revenue and net assets, thus potentially impacting share value. The presence of robust governance frameworks and clear abstention by interested parties signal a transparent process, which may boost investor confidence. However, the direct and indirect involvement of major shareholders and directors in both Parlo and LKL Group should be noted, as this could raise concerns over related party dealings, particularly if not managed in the best interests of minority shareholders.

Any significant deviation from estimated transaction values, or any subsequent material contract or litigation arising from these transactions, may have a material effect on Parlo’s financials and thus its share price.

AGM and Action Required

• The 28th AGM is set for 19 June 2026 at 10:00 a.m., Menara Lien Hoe, Persiaran Tropicana, Selangor. Shareholders are strongly encouraged to review the full circular and participate in the AGM, either in person or by proxy, to vote on the mandate renewal.
• Proxy forms must be lodged by 10:00 a.m. on 17 June 2026.

Directors’ Recommendation

The Board of Directors (with the exception of interested parties Mr. Ti Lian Seng and Mr. Ng Fun Kim) has unanimously recommended that shareholders vote in favour of the proposed renewal of the existing shareholders’ mandate.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to read all official documents and consult with professional advisers before making investment decisions. The author and publisher accept no liability for any actions taken in reliance on this article.

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